WorksheetsPop Quiz For Credit
Total questions: 37
Worksheet time: 22mins
What is typically required to qualify for a credit card?
A minimum age of 25
Proof of employment
A good credit score
A co-signer
Which of the following is a basic provision of credit and loan laws?
Lenders must provide a 30-day grace period
Interest rates must be below 10%
Borrowers have the right to know the annual percentage rate (APR)
Loans must be repaid within 5 years
What are the names of the three major credit bureaus?
Equifax, TransUnion, Experian
FICO, VantageScore, Equifax
TransUnion, Experian, FICO
Experian, VantageScore, TransUnion
Which of the following items is typically paid for with a loan or line of credit?
Groceries
A car
Clothing
Utilities
Which strategy is effective for managing debt?
Ignoring bills until they are due
Paying only the minimum payment on credit cards
Creating a budget and sticking to it
Taking out new loans to pay off old ones
Which of the following actions will negatively impact your credit score?
Paying bills on time
Applying for multiple credit cards in a short period
Keeping credit card balances low
Checking your own credit report
What is the difference between a credit rating and a credit report?
A credit rating is a detailed history of your credit, while a credit report is a numerical score
A credit report is a detailed history of your credit, while a credit rating is a numerical score
Both are the same and used interchangeably
A credit rating is issued by banks, while a credit report is issued by credit bureaus
Which of the following is a characteristic of a secured loan?
It does not require collateral
It typically has a higher interest rate than unsecured loans
It requires collateral
It is only available to businesses
How does an amortization schedule help in understanding a loan?
It shows the total interest paid over the life of the loan
It lists the monthly payments and how they are applied to principal and interest
It provides the credit score needed to qualify for the loan
It outlines the penalties for late payments
What is a key difference between voluntary and involuntary bankruptcy?
Voluntary bankruptcy is filed by creditors, while involuntary is filed by the debtor
Voluntary bankruptcy is filed by the debtor, while involuntary is filed by creditors
Both are filed by the debtor
Both are filed by creditors
Which of the following is a source of assistance for debt management?
Credit counseling services
Payday loans
High-interest credit cards
Loan sharks
What is a typical condition of an unsecured loan?
It requires collateral
It typically has a lower interest rate than secured loans
It does not require collateral
It is only available for home purchases
Your credit score can range from?
300-850
275-800
300-800
250-750
This loan can charge you up to 400% interest.
Secured Loans
Unsecured Loans
Personal Loans
Payday Loans
What are some advantages of using a credit card?
If you pay off your balance every month in full, it is similar to a short-term interest-free loan.
If you need to carry a balance, the interest rates are generally quite low (less than 7%)
Since it is tied directly to your checking account, it prevents you from spending more money.
Using it will always negatively affect your credit score.
Fill in the blank: A _______ is someone other than the borrower who agrees to sign the loan document and repay the loan if the original borrower stops making payments
cosigner
collateral
securer
loan shark
What are two examples of collateral (pick 2)
vacation
house
education
car
Credit means you ________now and ________ it back later.
Borrow, Pay
Pay, Borrow
Pay, Pay
This is the original amount of loan before interest.
principal
loan term
credit
interest
REVOLVING Credit can only be used ONCE
True
False
The highest FICO score possible is:
1600
1000
850
700
Donovan is applying for a loan and he is curious to know who calculates his credit scores. Can you help him?
Credit bureaus
Lenders like the bank where Donovan is applying for the loan
Fair Isaac Corporation
Consumers like Donovan himself
What can you do to make sure you receive a good credit score?
Frequently change jobs and addresses.
Pay your bills on time and keep credit card balances low.
Use as much of your available credit as possible.
Apply for new credit cards every month.
How long is the information in a person's credit report kept on file?
2 years to 5 years
5 years to 8 years
7 years to 10 years
10 years to 20 years
Analyze the circle graph. Identify the two most significant factors in establishing good credit according to the graph.
Types of Credit Used and New Credit
Paying Bills On Time and Amount of Money Owed
Years of Credit History and Types of Credit Used
New Credit and Amount of Money Owed
What is the impact of closing a credit card account on your credit score?
It has no impact on your credit score.
It automatically increases your credit score by 50 points.
It always improves your credit score.
It can potentially lower your credit score.
Which of the following is a benefit of having a high credit score?
Better chances of loan approval.
Higher interest rates on loans.
Limited access to credit cards.
Increased monthly payments.
What is the primary purpose of a credit report?
To provide a detailed history of your credit activities.
To determine your annual income.
To calculate your tax obligations.
To list your monthly expenses.
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 can you do to reduce debt?
Increase spending
Pay more than the minimum payment
Open new credit accounts
Close all credit accounts
The total cost of using credit, including interest and fees
grace period
loan term
finance charge
credit report
The federal Fair Debt Collection Practices Act of 1977 dictates how:
much debt a person is allowed to carry
much interest a lender can charge
debt collectors can interact with individuals
much of a debt a per must repay
Revolving credit is...
a type of credit that can be used repeatedly up to a certain limit as long as the account is open and payments are made on time.
a type of credit that can be used only once up to a certain limit and must be closed immediately after all payments are due
a spinning door with money in it
a round device that holds credit cards and spins, making it easy to shuffle through all your credit cards quickly
What debt-to-credit ratio is recommended to maintain a good credit score?
30%
25%
50%
10%
The Rate lenders charge borrowers for money
Interest Rate
Interest
Credit Score
Principal
The non-interest portion of a loan
Interest Rate
Principal
Interest
Credit Score
