WorksheetsUnderstanding Credit Scores and Financial Accounts
Total questions: 15
Worksheet time: 8mins
What is a credit score based on?
Your income level
Your education level
Your age
Your history with lenders
Which of the following can help you maintain a high credit score?
Making payments on time
Using only debit cards
Closing old credit accounts
Applying for multiple credit cards at once
What is one benefit of having a high credit score?
Easier access to credit cards
Saving money and easier access to housing
Higher interest rates on loans
Lower monthly fees on checking accounts
Which factor does NOT affect your credit score?
Inquiries on your credit report
A physical disability
Types of credit cards/loans
On-time payment history
How often can you request a free credit report under the Fair Credit Reporting Act?
Every 6 months
Every 12 months
Every 2 years
Every month
What is the primary purpose of a savings account?
To pay bills online
To withdraw cash from ATMs
To make daily transactions
To earn interest on deposited money
What is a key difference between debit and credit cards?
Debit cards use your own money from your bank account
Credit cards do not affect your credit score
Credit cards are linked directly to your bank account
Debit cards let you borrow money
What happens if you only make minimum payments on a credit card over a long period?
You will not be charged any interest
Your credit card balance will decrease quickly
You will pay more in interest
Your credit score will increase
Which of the following is a benefit of using a checking account?
Avoiding all bank fees
Earning high interest
Easy access to deposited money
Building credit history
What is one way to build a high credit score?
Paying back student loans on time
Using only cash for all purchases
Closing all credit card accounts
Avoiding all types of loans
What is the consequence of missing payments on loans?
Your credit score will decrease
Your credit score will increase
You will earn rewards points
You will receive a lower interest rate
What is the purpose of a checking account?
For everyday usage and transactions
To invest in stocks
To earn high interest
To save money for long-term goals
What is a potential disadvantage of using credit cards?
They are accepted worldwide
They help build credit history
They can be costly if not paid off quickly
They offer rewards and cash back
What is one way to avoid paying interest on credit card balances?
Using the card for cash advances
Making only the minimum payment
Opening multiple credit card accounts
Paying the balance in full within a month
What is a benefit of having both checking and savings accounts?
You can only use one at a time
You avoid all banking fees
You earn the same interest on both
You can manage daily expenses and save for the future
