Free Printable Credit Test Review

Worksheets

Credit Test Review

Total questions: 25

Worksheet time: 13mins

Name

Class

Date

Nora is considering taking out a payday loan to cover some unexpected expenses. She wants to know what the average APR for such a loan is closest to.

14%

40%

400%

Liam is trying to manage his credit card debt. Which of these strategies would lead to the HIGHEST overall cost?

Paying off his credit card bill in full every month

Paying 20% of his credit card balance every month on time

Making the minimum payment (3% of his credit card balance) every month on time

Making the minimum payment (3% of his credit card balance) every month with an occasional late payment

David is reviewing his credit report and wants to ensure he is checking with legitimate agencies. Which of the following is NOT a credit reporting agency?

Experian

Equifax

Federal Trade Commission

TransUnion

Grace is considering taking out a loan to buy a car. Which of the following statements is CORRECT about secured loans?

They are a good choice to use for student loans

If the borrower does not make payments, the lender can repossess the item

In the event of default, the borrower loses nothing except for the down payment

They usually have higher interest rates as compared with unsecured loans

Luna is reviewing her new credit card offer. How are the details of the offer, such as interest rates and fees, displayed?

Credit Report

Credit Card Statement

Schumer Box

Terms and Conditions

Imagine Aria is traveling and needs some quick cash, so she decides to use her credit card at an ATM. Which of the following interest rates would she be most concerned with?

APR for Purchases

APR for Balance Transfers

APR for Cash Advances

Penalty APR

Elijah recently received his first credit card and is learning about managing his finances. Why would credit card companies prefer that cardholders like Elijah make the minimum monthly payment every month rather than paying their total balance in full?

This is required by federal law for tax purposes

This allows the card holder to pay their bill quickly and close the card when they’re ready

This enables the credit card company to make more money

This helps cardholders develop financial independence

Avery is planning to buy a car, but she has a low credit score. This will affect her financially because the _____.

interest rate of loans will be lower

purchase price of an item will be higher

monthly payments will be lower

the interest rate of loans will be higher

Charlotte is considering filing for bankruptcy and wants to know how long it will stay on her credit report. How long will bankruptcy stay on your credit report?

2 years

4 years

6 years

7 years

10.

A background check might be used towards which of the "5 Cs of credit" to help determine if Charlotte will pay back the loan?

Capacity

Character

Collateral

Credit History

11.

Repossession would fall under which of the "5 Cs of Credit"?

Collateral

Credit History

Capacity

Character

12.

Avery found himself unable to pay his debts, and as a result, he had to go through the legal process where some or all of his assets were distributed among his creditors. This process is called _____.

bankruptcy

credit counseling

adjusted repayment

debt collection

13.

Aiden is reviewing his credit report and notices several entries. All of the following would show up on his credit report EXCEPT...

Student loan activity

Payment history of his car loan

Credit card payment history

Salary of his current job

14.

Aiden is considering who might check his credit score. Which of the following individuals or groups would be the LEAST likely to look at Aiden's credit score?

Employers

A bank representative who is helping Aiden open a savings account

Credit card companies

Auto insurers

15.

When Bryce attempted to borrow money at the bank, he learned that his credit score is low. Which statement best describes what this is likely to mean for Bryce?

The interest rates on his loan will be lower, since his credit score is low.

The purchase price of the item he needs the loan for will be higher due to his low credit score.

The monthly loan payments will be lower due to his lower credit score.

The interest rates on his loan will be higher, since his credit score is low.

16.

Jake's credit application has been declined because of his negative credit history. Which statement is most likely to be true?

Jake pays his bills consistently and on time.

Jake has applied for 4 credit cards and a car loan in the past 6 weeks.

Jake has received 3 traffic tickets in the past 2 months.

Jake responsibly holds 2 store credit cards, a bank credit card, a car loan, and a mortgage.

17.

Which of the following is NOT included in an individual's credit report?

Current and past addresses

Account balances

Bankruptcies and foreclosures

Medical information

18.

Edward wants to develop a positive credit history. How should he do this?

Maintain responsible amounts of available credit.

Have one type of credit account.

Pay cash for the majority of purchases.

Open credit accounts in his parents' names.

19.

Which response best completes the sentence "It's best to begin establishing credit when you're young because ________" ?

Credit scores are free for anyone under the age of 25.

You need a credit history and report to qualify for Federal student loans.

You will likely need a credit history to rent your first apartment, finance your first car, or open an unsecured credit card.

Interest rates will only continue to go up as you get older.

20.

What range is typical for credit scores?

0-100

0.0-4.0

300-850

300-501

21.

How might freezing your credit help you protect your personal information?

Your credit information is locked for ten years but can be accessed by auto and mortgage lenders

All of your credit cards are canceled and removed from your credit file

Your credit information is blocked to help prevent someone from opening accounts in your name

Your credit report continues to include past credit information but does not include new accounts you open

22.

Sean received a notification that his information was compromised and he is likely a victim of identity theft. Sean should take all of the following steps EXCEPT…

Place an extended fraud alert or security freeze on his credit

File an identity theft report with the Federal Trade Commission

Enable Two-Factor Authentication on his accounts for added security

Wait for 90 days before contacting the Federal Trade Commission to see if they catch the fraudulent behavior

23.

Three days ago, Niko used his credit card to buy a new jacket he found through a social media ad. He still has not gotten a receipt of payment or confirmation email regarding the purchase and he’s starting to suspect he was scammed. What is the next BEST thing Niko should do?

Wait for his bank to identify the fraudulent charge and reach out to him within 7 days of the purchase

Report the fraudulent charge to his bank and ask them to reverse the transaction

Wait to see if the transaction shows up on his next credit card statement

Try to contact the vendor to see if they can reverse the transaction

24.

Which of these students is doing a POOR job of protecting themselves against identity theft?

Wynn: “I just requested copies of my annual credit report.”

Beatrice: “I have a calendar reminder to check my bank account balance once a week for charges.”

David: “I use the same login credentials for all my bank accounts to keep my finances organized together.”

Sonia: “I use 2-factor authentication on my mobile device for all my logins.”

25.

Aria recently discovered that her personal information was used to open unauthorized accounts. She wants to know which organization oversees identity theft claims.