WorksheetsLegacy: Understanding Credit
Total questions: 20
Worksheet time: 10mins
What is credit?
Money you give to your friends
Money you borrow and promise to pay back
Free money from the government
A type of savings account
Who provides credit to people?
Your school
Banks and credit card companies
Grocery stores
Your parents
When you borrow money, what is it called?
A donation
A gift
A loan
A deposit
What is a credit card?
A card that earns money
A card you use to buy things with your own money
A card that lets you borrow money to make purchases
A store loyalty card
What happens if you don’t pay your credit card bill on time?
Nothing
You earn bonus points
You are rewarded
You may be charged interest or a late fee
What is interest?
Free money
Money the bank gives you as a gift
Extra money you pay for borrowing
A game you play
What is a credit score?
Your GPA in school
A number that shows how well you manage money and credit
Your test score in math class
The amount of money in your wallet
Why is having a good credit score important?
So banks trust you to borrow money
So you can get more followers on social media
So you don’t have to go to school
So you can buy snacks at school
What can help build a good credit score?
Paying bills late
Ignoring your credit card balance
Paying on time and keeping your balance low
Spending more than you earn
What does it mean to “default” on a loan?
You paid it early
You paid extra
You got a refund
You failed to pay it back
Which of the following affects your credit score?
Your favorite color
The number of pets you have
Whether you walk to school
How often you pay bills on time
Can teenagers build credit?
Yes, by using joint accounts or student credit cards
Only if they have a car
Only after college
No, only adults
If you borrow more than you can repay, what might happen?
You win a prize
Your credit score could go up
You may go into debt and hurt your credit score
The government pays it
What is a credit report?
A list of TV shows
A shopping list
A school report card
A record of your credit activity and payments
How often can you check your credit report for free?
Once a week
Once a year
Never
Only when you're 18
What is a responsible way to use credit?
Spend more than you can afford
Pay only the minimum each month
Use it for emergencies and pay it back quickly
Ignore your statements
Which is better for your credit score?
Using credit wisely and not too often
Never using credit at all
Spending every dollar you borrow
Always maxing out your credit card
What is the minimum payment on a credit card?
The full amount you owe
The smallest amount you must pay to avoid late fees
A donation
Your grocery bill
What is one risk of using credit irresponsibly?
Getting more money
Building a strong credit score
Getting into debt
Being more popular
What is one benefit of having a good credit score as an adult?
Free concert tickets
Lower loan interest rates and easier approval for housing
Extra recess
School lunch discounts
