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WorksheetsLoan and Credit Quiz
Total questions: 60
Worksheet time: 30mins
What is the main difference between a secured loan and an unsecured loan?
A secured loan is for a shorter term than an unsecured loan.
A secured loan has a higher interest rate than an unsecured loan.
A secured loan is protected by collateral, while an unsecured loan is not.
A secured loan is only for buying a house, while an unsecured loan is for other things.
What is a co-signer and what is the risk of being one?
A co-signer is someone who helps you pay back your loan. The risk is that you will have to pay more money.
A co-signer is someone who helps you understand loans. The risk is that you will not understand the loan.
A co-signer is someone who helps you find a loan. The risk is that you will get a bad loan.
A co-signer is someone who helps you get a loan by guaranteeing the loan. The risk is that your credit score can be affected if the borrower defaults on the loan.
What is the difference between a fixed interest rate and a variable interest rate?
A fixed interest rate is lower than a variable interest rate.
A fixed interest rate stays the same throughout the loan term, while a variable interest rate can change.
A fixed interest rate is for short-term loans, while a variable interest rate is for long-term loans.
A fixed interest rate is only for secured loans, while a variable interest rate is for unsecured loans.
What is the main reason why the speaker says payday loans are "kind of the worst"?
Payday loans have very high interest rates.
Payday loans are only for people with bad credit.
Payday loans are hard to get.
Payday loans are not available in all states.
What is a good example of collateral for a secured loan?
A credit card.
A car.
A job.
A good credit score.
What is the main benefit of having a good credit score?
You can get a better job.
You can get a lower interest rate on a loan.
You can get a loan more easily.
You can get a higher credit limit on your credit card.
What are the three major credit agencies that maintain credit reports?
Experian, Transunion, and Equifax
Equifax, FICO, and Transunion
FICO, Experian, and Transunion
Experian, Equifax, and FICO
What is the highest possible FICO score?
950
650
750
850
What percentage of your credit score is determined by your payment history?
15%
35%
10%
30%
What is a credit report?
A number that shows how well you manage your money
A list of all your credit accounts and payments
A report that shows how much money you owe
A document that shows your income
What is the main reason it's important to check your credit report?
To see how much money you owe
To find out your credit score
To make sure there are no mistakes
To get a free copy of your report
What is the lowest possible FICO score?
300
500
100
850
What is the percentage of your credit score that is based on how much debt you have?
30%
15%
10%
35%
What is the name of the company that provides the most common credit score?
Equifax
Transunion
Experian
Fair Isaac Corporation
What is credit utilization?
The amount of money you owe on your credit cards.
The amount of credit you have available.
The percentage of your available credit that you are using.
The number of credit cards you have.
What is a good credit utilization percentage to aim for?
Over 50%
Under 30%
Exactly 50%
It doesn't matter.
How can you calculate your credit utilization ratio?
Ask your parents.
Check your credit card statement.
Divide your total credit balances by your total credit limits and multiply by 100.
Call a credit bureau.
What is one reason why it is important to have a good credit score?
To get a good job.
To buy a house.
To get a driver's license.
To get a pet.
What does the narrator say is a good first step to improving your credit score?
Getting a job.
Paying your bills on time.
Understanding how credit scores work.
Asking your parents for help.
What is a secured credit card?
A credit card that requires you to pay a fee to use it.
A credit card that lets you spend money you don't have, but you have to pay it back.
A credit card where you put down money to secure the amount you can borrow.
A credit card that is only good at certain stores.
Why is it important to check if a credit card issuer reports your payments to the credit bureaus?
Because you need to know if the card is safe to use.
Because you need to know if the card is worth the annual fee.
Because you want to make sure your good payment history will help you build credit.
Because you need to know if the card is accepted everywhere.
What is a co-signer and why might someone need one?
A co-signer is someone who helps you pay your bills. You might need one if you have bad credit.
A co-signer is someone who agrees to pay your debt if you can't. You might need one if you don't have a good credit history.
A co-signer is someone who helps you find a credit card. You might need one if you don't know where to start.
A co-signer is someone who gives you money. You might need one if you are broke.
What is a good first step to take when you are trying to build credit?
Get a loan from a friend.
Open a checking account at a bank.
Apply for a credit card.
Buy a new car.
What is a secured credit card?
A credit card that is only good at certain stores.
A credit card that lets you spend money you don't have, but you have to pay it back.
A credit card where you put down money to secure the amount you can borrow.
A credit card that requires you to pay a fee to use it.
What is a co-signer?
Someone who helps you find a credit card.
Someone who agrees to pay your debt if you can't.
Someone who gives you money.
Someone who helps you pay your bills.
What is the difference between a prepaid card and a credit card?
A prepaid card is a gift card, and a credit card is for buying things you don't have the money for.
A prepaid card is like a debit card, and a credit card lets you spend money you don't have, but you have to pay it back.
A prepaid card is for buying things online, and a credit card is for buying things in stores.
A prepaid card is for kids, and a credit card is for adults.
What is one advantage of using a prepaid debit card?
It can help you build credit.
It is protected by federal law.
It is accessible to anyone.
It has a generous credit limit.
What is one consequence of using a credit card if you don't pay it off?
It can be used to take out cash from ATMs.
It can be used in lots of different places.
It can lead to debt if you don't pay it off.
It is protected by federal law.
What is one advantage of using a debit card?
It can help you build credit.
It can be used to take out cash from ATMs.
It has a generous credit limit.
It is protected by federal law.
What is one thing that the credit card says is a trade-off for having a generous credit limit?
It has a lot of fees.
It can be used to take out cash from ATMs.
It charges interest on balances.
It is protected by federal law.
What does the prepaid debit card say it is good for if you are traveling?
It can be used in lots of different places.
It can help you build credit.
It is protected by federal law.
It has a generous credit limit.
What does the debit card say it is good at?
Building credit.
Managing money.
Getting a lot of rewards.
Being used in lots of different places.
What does the credit card say is a problem with prepaid debit cards?
They are not protected by federal law.
They have a lot of fees.
They can be used to take out cash from ATMs.
They are not accessible to everyone.
What is the main reason Yaneli is excited about getting her 5th credit card?
She can now buy more things.
She has a higher credit limit, which helps her credit score.
She can now get a lower interest rate.
She can now get a free credit card.
What is the average interest rate for credit cards?
12%
15.12%
20%
25%
What is the best type of billing cycle for a credit card?
Two-cycle billing
Single-cycle billing
Daily billing
Weekly billing
What is the name of the website that Yaneli suggests people use to find credit card recommendations?
Credit Karma
Credit Score
Credit Report
Credit Card
What is the traditional grace period for credit cards?
20 days
25 days
30 days
35 days
What is the main reason why Yaneli suggests avoiding two-cycle billing?
It makes it harder to track your spending.
It can lead to higher interest charges.
It makes it harder to make payments on time.
It can lead to lower credit scores.
What is one reason why a rewards credit card might not be a good choice for someone?
Rewards credit cards can have high interest rates if you don't pay your balance each month.
Rewards credit cards can have annual fees.
Rewards credit cards can have limits on how much you can earn in a year.
All of the above.
What is one thing you should look for when deciding if a rewards credit card is right for you?
If the card has a high annual fee.
If the card has a low interest rate.
If the card has a sign-up bonus.
If the card has a limit on how much you can earn in a year.
What is one thing you should consider before getting a rewards credit card?
If you have good credit.
If you can pay off your balance each month.
If you can use the rewards.
All of the above.
What is a good credit score to qualify for most rewards credit cards?
At least 630
At least 690
At least 750
At least 800
What is one example of a reward that you can earn with a rewards credit card?
Cash back
Points
Miles
All of the above
What is one thing you should look for when deciding if a rewards credit card is right for you?
If the card has a high annual fee
If the card has a low interest rate
If the card has a sign-up bonus
If the card has a limit on how much you can earn in a year
What is a 'line of credit'?
A line of credit is the amount of money you can borrow from a credit card company.
A line of credit is a special type of credit card that has no interest.
A line of credit is a type of loan that you can use to buy a house.
A line of credit is a type of credit card that you can only use for emergencies.
What happens if you only pay the minimum amount on your credit card each month?
You will pay off your debt faster.
You will pay less interest.
You will pay more interest and it will take longer to pay off your debt.
You will be able to borrow more money.
Why are credit card companies happy when people only pay the minimum amount each month?
They want to help people manage their money.
They make more money from interest.
They want to encourage people to spend more.
What is a 'deadbeat' in the eyes of a credit card company?
Someone who pays off their debt every month and never pays a late fee.
Someone who uses their credit card to buy expensive things.
Someone who doesn't pay their bills on time.
Someone who borrows money from a payday loan company.
What is the main reason why credit card companies make money?
They charge high fees for using their cards.
They offer rewards programs to customers.
They charge interest on the money you borrow.
They sell your personal information to other companies.
What is the difference between a credit card and a payday loan?
Credit cards are for buying things, payday loans are for emergencies.
Credit cards have lower interest rates than payday loans.
Credit cards are easier to get than payday loans.
Credit cards are only for people with good credit, payday loans are for everyone.
What is the minimum payment on a credit card?
The smallest amount you can pay each month.
The amount you owe on your credit card.
The amount you can spend on your credit card.
The amount of interest you owe on your credit card.
What is the main reason why payday loans are dangerous?
They have very high interest rates.
They are only available to people with bad credit.
They are difficult to pay back.
They can lead to identity theft.
What did JoAnn do wrong when she was setting up a payment plan with the debt collector?
She did not ask for a copy of the agreement.
She did not read the paperwork carefully.
She did not make the first payment on time.
What happened to JoAnn’s money after she set up the payment plan?
The debt collector took 25% of their income each month.
She was able to pay off the debt quickly.
The debt collector did not take any money from her.
She was able to save money by setting up the payment plan.
What is the snowball method for paying off debt?
Paying off the smallest debt first and then moving to the next smallest debt.
Paying off the debt with the highest interest rate first.
Paying off all debts at the same time.
Paying off debts based on the amount of money you can afford to pay each month.
What is the high-rate method for paying off debt?
Paying off the debt with the highest interest rate first.
Paying off the smallest debt first.
Paying off all debts at the same time.
Paying off debts based on the amount of money you can afford to pay each month.
What is a good way to stay motivated when paying off debt?
Think about how much money you'll save.
Think about how much debt you have.
Think about how much you'll owe in the future.
Think about how much you'll have to pay each month.
What is a good reason to talk to a financial professional about your debt?
If you can't make your minimum payments.
If you want to get out of debt quickly.
If you want to use the snowball method.
If you want to use the high-rate method.
What is the most important thing to remember when trying to get out of debt?
To use the snowball method.
To use the high-rate method.
To talk to a financial professional.
To be determined and have a plan.
