WorksheetsIntroduction to Credit
Total questions: 16
Worksheet time: 18mins
When using credit, the purchase amount becomes what once the payment agreement is made?
Loan
Debt
Mortgage
IOU
Credit allows for purchases without cash.
True
False
Credit agreements are not legally binding
True
False
Credit is free
True
False
Lenders do not check a person's likelihood to repay before accepting a credit agreement.
True
False
Which of the following is NOT a type of credit?
Loans
Debit Cards
Revolving Credit Accounts
Credit Cards
Which of the following is often used for operating expenses?
Lump Loan
Short-Term Loans
Intermediate-Term Loans
Large Loans
Which of the following is an example of an intermediate-term loan?
Automobiles
Houses
Credit Cards
IOUs
A grace period is a free period which allows you to avoid finance charges by paying your balance in full before the due date.
True
False
An annual fee is an amount paid to you by the credit card company for using their service each year.
True
False
Which of the following is NOT part of the analysis for the creditworthiness of borrowers?
Judgment
Family Interviews
Formal Credit Scoring Models
Risk Assessment Worksheets
A borrower's interest rate can be determined using which of the following?
Loan Amounts
Loan Terms
Credit Scores
Repayment Schedules
Borrowers can use comprehensive financial records to speed up the evaluation process.
True
False
Borrowers have five FICO scores - one for each of the credit bureaus.
True
False
Quien Sabe
Age is a factor in someone's FICO score
True
False
Why do you think it's important for people to have a good credit score, and how do you think it might affect their ability to make big purchases or loans in the future?
