WorksheetsUsing Credit Quiz
Total questions: 25
Worksheet time: 13mins
Define the following: Select the best definition of Credit.
The ability to borrow money from someone else with the agreement to pay it back later
Money received regularly for work or investments
A set period when payment can be delayed without a penalty
A premium such as a gift or discount offered to encourage a purchase
Define the following: Select the best definition of Creditors.
Persons, businesses, or service providers that lend money
People who borrow money from others and must repay it
The yearly interest rate on a credit card
A legal process in which a lender repossesses property
Define the following: Select the best definition of A Debtor.
A person who borrows money from others and must repay the debt
A lender that provides money or services for repayment
A summary of your credit card activity and bills
A change in ownership over goods or property
Define the following: Select the best definition of Capital.
Wealth in the form of money or other assets owned by a person after deducting debts
Full payment required each period for a type of credit
A set amount of time payment can be delayed without a penalty
The yearly interest rate on a credit card
Define the following: Select the best definition of Revolving Credit.
Credit you can borrow on an ongoing basis with interest rates, a spending limit, and monthly payments
Credit requiring full payment for each period
A loan with a specific sum repaid over time with monthly payments
Money received for work or investments
Define the following: Select the best definition of Charge Cards.
Cards retailers issue for use only in their business
Cards that build a credit score automatically
Cards that always require collateral
Cards used only for international purchases
Define the following: Select the best definition of Open Credit.
Credit that requires full payment for each period, such as per month
Credit borrowed on an ongoing basis with a limit
A loan repaid over a set period with monthly installments
A summary of credit activity and bills
Define the following: Select the best definition of Installment Credit.
A loan with a specific sum of money repaid over a set period by making monthly payments that include interest and fees
Credit requiring full payment each period
The yearly interest rate on a credit card
An incentive offered to encourage a purchase
Define the following: Select the best definition of Interest (credit card).
The amount of money the credit card company will charge you unless you pay off your balance each month
The principal amount of a loan
The yearly interest rate on a card
A rating assessment of your creditworthiness
Define the following: Select the best definition of Grace period.
A set amount of time payment can be delayed without a penalty
The yearly interest rate on a card
Money received for work or investments
A premium offered to encourage a purchase
Define the following: Select the best definition of Incentive buying.
A premium such as a gift, discount, or merchandise offered to encourage a purchase
Borrowing on an ongoing basis with monthly payments
A change in property ownership
Cash or points earned from card spending
Define the following: Select the best definition of Credit reports.
Reports about your credit activity and credit situation, such as loan history and status of credit accounts
A monthly card statement
The number from 300–850 representing creditworthiness
A document transferring property ownership
Define the following: Select the best definition of Credit statements.
A summary of your credit card activity, bills, and additional information
Reports about your overall credit history
The yearly interest rate on a card
A legal process to repossess property
Define the following: Select the best definition of Title transfer.
A change in ownership over goods or property, such as transferring a car title
A summary of credit activity
A joint signing to guarantee payment
A set amount of time payment can be delayed without penalty
Define the following: Select the best definition of Co-signing.
A joint signing of a loan or lease with another person to guarantee payment
A legal process in which a lender repossesses property
Changing ownership of goods or property
Reports about your credit activity
Define the following: Select the best definition of Foreclosure.
A legal process in which a lender repossesses and attempts to sell a borrower's property when they fail to make payments
A number representing creditworthiness
A joint signing to guarantee payment
A summary of credit card activity
Define the following: Select the best definition of Bankruptcy.
A legal proceeding for a person or business that cannot repay outstanding debts, usually imposed by a court order initiated by the debtor
A yearly interest rate on a card
A change in ownership of property
A rating assessment based on creditworthiness
Define the following: Select the best definition of Collateral.
Something pledged as security for repayment of a loan, to be forfeited in the event of default
Cash or points earned from card use
A premium offered to encourage a purchase
A set time payment can be delayed without penalty
To use credit, you first must qualify: What must the bank be assured of for you to qualify to use credit?
That you can make your payments and pay off your debt
That you have rewards points available
That you can transfer a title
That you have a co-signer for every purchase
When deciding on using credit, which factor should be considered?
Income and capital wealth
Availability of retailer discounts only
Whether foreclosure laws exist
Whether bankruptcy eliminates all interest
Which of the following are advantages of credit? Select all that apply.
Purchase power
Financing
Emergencies
Safety
Helps build your credit score
Which of the following are disadvantages of credit? Select all that apply.
Overspending
Opportunity cost of credit decisions
Fees and finance charges
Identity theft
Which of the following are types of credit? Select all that apply.
Revolving credit
Charge cards
Open credit
Installment credit
Once you have a credit card, which actions should you take? Select all that apply.
Know your credit card limits
Make reasonable purchases you can quickly pay off on time
Make your monthly credit card payments
What are the two popular factors in why someone chooses a credit card?
Rewards
Interest
