WorksheetsCategorizing Credit Types & Credit Score Homework
Total questions: 19
Worksheet time: 9mins
What is the purpose of understanding the different categories of credit?
To borrow money without repayment
To make informed financial decisions
To avoid using credit altogether
To accumulate interest on loans
Which category of credit is associated with loans for big-ticket items?
Installment credit
Revolving credit
Open credit
Prepaid credit
What is the characteristic of installment credit?
Flexible repayment terms
No borrowing involved
Fixed installments over a specified period
Access to a maximum credit limit
Which form of credit falls under the revolving credit category?
Car Loan
Credit Card
Prepaid Gas Card
Phone Bill
What is the main feature of revolving credit?
Fixed Repayment Schedule
No Predetermined Amount
Maximum Credit Limit
No Borrowing Involved
Which category of credit provides flexibility in terms of repayment?
Installment Credit
Revolving Credit
Open Credit
Prepaid Credit
What is an example of open credit?
Car Loan
Credit Card
Phone Bill
Home Mortgage
What is an characteristic of open credit?
Fixed repayment schedule
No borrowing involved
Maximum credit limit
Varying amount due each month
Which category of credit involves borrowing money with a fixed repayment schedule?
Installment Credit
Revolving Credit
Open Credit
Prepaid Credit
How can understanding credit categories help individuals?
Avoid Financial Decisions
Accumulate Interest on Loans
Make Informed Decisions and Maintain Financial Well-Being
Borrow Money Without Repayment
Which of the following is TRUE about a credit report?
It is a complete history of one type of credit you have
Credit reports are maintained by the 5 main credit bureaus
You can get a copy of your credit report for free
You can get a credit report only when you're 21 years old
Which is an exceptional credit score?
672
555
713
813
Of the five areas used to measure a person’s credit, what two areas are worth the most points?
New credit and types of credit.
Length of credit history and new credit.
Payment history and how much you owe.
New credit and payment history.
