WorksheetsWhat is Credit/Praguer U
Total questions: 9
Worksheet time: 5mins
What is Credit?
A way to borrow money from the government
A loan you need to pay back within a month
The ability to borrow money and pay later
Only for buying small items like snacks
Credit allows you to buy on the ___________ that you will pay for it later.
condition
idea
card
promise
When you use credit, who are you borrowing money from?
Credit card company/bank
parents
loan officer
checking account
How does paying your bills on time impact your credit score?
No effect on your score
It can hurt your credit score
It positively impacts your score
Only affects your spending habits
How can credit affect your ability to make large purchases, such as a car or home?
Poor credit means easier loan approvals
Good credit can make large purchases more affordable
Credit does not affect large purchases
Only cash purchases are possible for large items
What is a lender?
Someone who borrows money
Someone who gives loans or credit
A person who buys items in stores
A person who keeps your money safe
Who gives you a credit score?
Your bank
Your employer
Credit reporting agencies (Equifax, Experian, TransUnion)
Your friends and family
What determines your credit score?
The amount of money you have in the bank
The number of credit cards you own
Your credit history, including payment history, debt, and credit use
Your age and education level
If I pay my bills on time, what will happen to my credit score?
It will go down
It will stay the same
It will go up
It will disappear
