WorksheetsCredit and Debt
Total questions: 13
Worksheet time: 17mins
A (a) score is a number that represents your creditworthiness.
When you borrow money, the amount you owe is called (a) .
(a) is the fee you pay for borrowing money, usually a percentage of the amount borrowed.
It's important to make your monthly payments on (a) to avoid penalties and late fees.
The maximum amount you can borrow on a credit card is called the credit (a) .
What is the term for the fee charged for borrowing money?
Principal
Interest
Equity
Balance
Which of the following can negatively impact your credit score?
Paying bills on time
High credit card balances
Having a variety of credit types
Low credit utilization
What is a common way to build credit?
Avoid all forms of credit
Apply for multiple credit cards at once
Use a credit card responsibly and pay it off monthly
Only use cash for purchases
What does it mean if you have a high credit utilization rate?
You are using a small portion of your available credit
You are using a large portion of your available credit
You have a variety of credit accounts
You have no credit accounts
What can you do to reduce debt?
Increase spending
Pay more than the minimum payment
Open new credit accounts
Close all credit accounts
Why is it important to build a good credit score?
How can interest affect the total amount you owe on a loan or credit card?
What strategies can you use to manage and prevent accumulating too much debt?
