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WorksheetsUnderstanding Credit
Total questions: 16
Worksheet time: 13mins
What is a mortgage?
A car loan
Credit card debt
A loan to purchase real estate
Credit history
For your credit card account, you should aim to owe no more than 30% of your limit.
Which statement(s) is true?
If you have a $17,000 limit on your credit card you don't want to constantly $16,000 on the card.
Its ideal to have over 30% owed on your credit card.
If you have a 20,000 limit on your credit card its good to have 19,000 spent on it.
Preferably you want to have a small amount of debt on your credit card, so 30% or less of your limit.
Payment history accounts for (a) % of your score.
( type a two digit number below )
What is Credit History in simple terms?
( pick the best option )
The day your credit card payments are due.
How much you owe on your credit card.
A record of how you have handled money and debt.
What your credit score is.
Another name for credit score is (a) score
What is the credit score range?
0 to 1,000
150 to 700
5 to 900
300 to 850
Bad credit history means....
( select all that amply )
Your credit score is 850.
Low interest rates.
Low credit score.
High crippling interest rates.
What is an auto loan?
A loan to pay for a house.
A loan that automatedly buys its self.
Borrowing money to buy a car.
Borrowing money for school.
What is a credit report?
A statement you make for you bank.
Shows your history of borrowed money
( paid and unpaid )
A proof of income.
Your paid debt on your credit card.
Borrowing money for schooling is also known as ______ _____.
(a)
When using your credit card, what is the best way to keep your standard of living?
paying the minimum due on each credit card you own
paying off your entire credit card bill each month
paying your credit card late
paying only items you feel like paying for that you charged
Which is an example of good debt?
Financing your education
Financing trendy clothes
Financing a vacation
Financing meals
How can revolving debt change from short term debt to long term debt?
paying your bills in full each month
financing college
paying your utility bill with your checking account
paying the minimum due on your credit card each month, carrying a large balance
Is this statement true or false?
A scholarship is a type of loan that you need to pay back.
What do you have to do to be responsible with your loans/credit cards?
Max out all your credit cards
Make monthly payments
No repayment schedule
Unlimited borrowing amount
Which factor is most likely to influence the interest rate on a credit application?
The applicant's age
The applicant's credit history
The applicant's favorite sport
The applicant's shoe size
