WorksheetsCredit Crunch Card Analysis Quiz
Total questions: 65
Worksheet time: 33mins
Which financial institution is mentioned on the card?
Credit Union of Texas
Bank of America
Wells Fargo
Chase Bank
What type of card is shown in the image?
Debit card
Credit card
Gift card
Prepaid card
Which company’s logo appears on the bottom right of the card?
MasterCard
Visa
American Express
Discover
Based on the card design, what is the likely purpose of the "Credit Crunch" card for students?
To teach financial responsibility
To provide free pet food
To offer travel discounts
To give access to online games
What is a debit in the context of banking?
A basic relationship where money going in and coming out of your account is completely your own
A type of loan provided by the bank
A method for earning interest on savings
A way to transfer money between different banks
Which of the following is an example of a debit?
Debit cards
Credit cards
Fixed deposits
Bank loans
Why is the money going in and coming out of your account considered "completely your own" in a debit relationship?
Because you are using your own funds for transactions
Because the bank lends you money for transactions
Because you earn interest on every transaction
Because the government monitors all transactions
What is credit?
An agreement between a lender and a borrower to obtain funds, goods, or services now and repay them later
A type of savings account
A government-issued identification
A form of insurance
What do credit bureaus do?
They produce your credit reports
They issue credit cards
They provide loans to borrowers
They set interest rates for banks
What is the purpose of a credit score?
To measure your risk level to lenders based on information in your credit report
To determine your annual income
To calculate your monthly expenses
To track your savings account balance
Explain how credit allows a borrower to obtain goods or services now and repay them later.
By providing immediate access to funds with a promise to repay in the future
By requiring full payment upfront for all purchases
By offering discounts for cash payments
By limiting purchases to only what is currently affordable
Why might lenders use credit scores when deciding to offer credit?
To assess the risk level of the borrower based on their credit report
To determine the borrower’s favorite color
To calculate the borrower’s age
To find out the borrower’s employment history
What is one key difference between debit cards and credit cards?
Debit cards can improve your credit score, but credit cards cannot.
Credit cards can improve your credit score, but debit cards cannot.
Both debit and credit cards can improve your credit score.
Neither debit nor credit cards can improve your credit score.
How does paying your monthly credit card bill affect your credit score?
It decreases your credit score.
It has no effect on your credit score.
It contributes to the successful rating of your credit score.
It locks your credit score.
Why might someone consider getting a credit card?
To unlock unlimited funds.
To improve their credit score.
To avoid paying bills.
To replace their debit card.
If you want to build a successful credit score, what should you do with your credit card?
Never use it.
Pay your monthly bill on time.
Only use it for cash withdrawals.
Share it with friends.
What is a secured loan?
A loan that does not require any collateral
A loan that allows you to put down your own money or collateral to get credit from a lender
A loan given without any credit check
A loan that is only for buying cars
Which of the following is an example of a secured credit product?
Unsecured personal loan
Secure Credit Card
Payday loan
Student loan
Why might a lender require collateral for a secured loan?
To ensure the borrower has a way to repay if they default
To make the loan process faster
To avoid paperwork
To increase the interest rate
List two types of secured credit products mentioned in the material and explain how they might be used in everyday life.
Secure Credit Card and Car Loan; used for building credit and purchasing a vehicle
Payday loan and Student loan; used for emergencies and education
Unsecured personal loan and Mortgage; used for travel and buying a house
Credit card and Personal loan; used for shopping and vacations
Which credit bureau gathers your credit information and offers financial tools?
Equifax
TransUnion
Experian
FICO
What is the main service provided by TransUnion?
Offering financial tools
Collecting payment history and credit details, providing reports and monitoring service
Boosting credit scores
Issuing credit cards
Which credit bureau is known for providing customer credit reports and scores, and is associated with experience boost?
Equifax
TransUnion
Experian
VantageScore
If you wanted to monitor your payment history and receive credit reports, which bureau would you most likely use?
Equifax
TransUnion
Experian
Credit Karma
Compare the roles of Equifax and Experian. How do their services differ based on the information provided?
Equifax only gathers information, while Experian provides financial tools.
Equifax gathers credit information and offers financial tools, while Experian provides customer credit reports and scores, known for experience boost.
Both offer the same services.
Experian gathers credit information, while Equifax provides credit scores.
Which of the following is a recommended way to start your credit journey?
Become an authorized user on a parent/guardian’s credit card
Ignore all credit opportunities
Only use cash for all purchases
Never check your credit score
What happens to a secure loan once your term ends?
The loan is closed
The loan continues indefinitely
The loan turns into a credit card
The loan is transferred to another person
How is a secure loan similar to a secured credit card?
Both help you build credit
Both require you to pay only cash
Both are only available to adults over 30
Both do not affect your credit score
Which student card offers "Cashback match" as one of its features?
Capital One
Discover
Chase
Wells Fargo
What is a common feature among all the student cards listed in the image?
Annual fees
Cashback rewards
No annual fees
Travel insurance
Which student card is described as "Easier to get approved"?
Chase
Wells Fargo
Capital One
Bank of America
If a student wants to build their credit history and earn cashback on purchases, which card would be the best choice based on the information provided?
Bank of America
Chase
Capital One
Wells Fargo
Compare the features of Wells Fargo and Discover student cards. Which feature is unique to Discover and not mentioned for Wells Fargo?
No annual fees
Builds credit
Cashback match
Simple cash back
Which of the following is a tip to maintain a good credit score?
Monitor your credit score daily
Ignore your credit score
Spend more than your credit limit
Pay bills whenever you want
What should you do to avoid negatively impacting your credit score?
Pay your bill by the due date
Pay your bill after the due date
Never pay your bills
Only pay part of your bill
Why is it important to keep your credit card balances below 30%?
It helps maintain a good credit score
It increases your debt
It lowers your credit score
It has no effect on your credit score
Which action demonstrates strategic thinking in managing your credit score?
Budgeting cash flow vs credit spent
Ignoring your spending habits
Spending without planning
Using credit cards for every purchase
What is a basic concept you should learn to begin maintaining a great credit score?
How credit scores work
How to spend all your credit
How to avoid paying bills
How to ignore your credit report
What is the starting credit score for each player in the Credit Tower game?
500
620
700
580
What should you do if you make the tower fall during the Credit Tower game?
Add 20 to your credit score and continue playing
Subtract 20 from your credit score, rebuild the tower, and keep playing
End the game immediately
Skip your next turn
During the Credit Tower game, what action do players take on their turn?
Roll a dice
Remove a numbered block from the tower
Draw a card
Spin a wheel
After removing a block in the Credit Tower game, what should a player do next?
Ignore the block and continue
Read the corresponding statement to add or subtract from their credit score
Put the block back in the tower
Pass the block to another player
Which website can you use to get free credit pulls once a year?
creditreport.com
freecredit.com
annualcreditcheck.com
mycreditscore.com
What is one way to protect your credit?
Freezing your credit
Ignoring your credit report
Spending more money
Sharing your credit information
What do credit bureaus do?
Produce your credit reports
Lend you money
Set your credit score
Monitor your bank account
What is a credit score based on?
Information in your credit report
Your age
Your income
The number of credit cards you own
Why might someone use paid services to monitor their credit?
To keep updated on their credit score
To get free money
To avoid paying taxes
To increase their income
Explain how freezing your credit can help protect you from identity theft.
It prevents new accounts from being opened in your name without your permission.
It increases your credit score automatically.
It allows you to spend more money.
It makes your credit report invisible to lenders.
What is an interest rate typically expressed as?
A percentage of the total payment amount over a specific period.
A fixed dollar amount paid monthly.
A random number chosen by the lender.
A fee for opening a bank account.
What does a higher interest rate mean for the borrower?
Higher costs over time.
Lower costs over time.
No change in costs.
Immediate repayment of debt.
Which of the following best describes interest?
Money paid to the lender that does not go to pay off your initial debt.
Money paid to reduce your debt.
Money received from the lender.
Money used to buy assets.
If you want to save money when borrowing, what should you look for in interest rates?
Lower interest rates.
Higher interest rates.
No interest rates.
Variable interest rates.
Explain why lower interest rates are beneficial for borrowers over time.
They reduce the total cost of borrowing.
They increase the total cost of borrowing.
They have no effect on borrowing costs.
They make repayment immediate.
Which of the following is a risk associated with "Buy Now, Pay Later" payment methods?
Guaranteed savings on every purchase
Impulse buys
No interest charges ever
Instant credit score improvement
What does "Buy Now, Pay Later" typically allow consumers to do?
Pay the full amount upfront
Get items instantly and pay over time
Only buy items during sales
Avoid all transaction fees
Which of the following is NOT a risk mentioned in the material about "Buy Now, Pay Later"?
Potential late fees
Negative credit reporting for missed payments
Guaranteed approval for all purchases
Encouraging overspending
Why might "Buy Now, Pay Later" lead to financial stress in the future?
It always reduces your monthly expenses
Hidden interest and missed payments can accumulate
It eliminates the need for budgeting
It guarantees no late fees
If someone misses payments on a "Buy Now, Pay Later" plan, what could happen to their credit report?
Their credit report will improve
There will be no effect on their credit report
Negative credit reporting may occur
They will receive a reward
Which of the following is a feature of the Student Checking Account at the Credit Union of Texas?
Free until age of 26
No monthly service charge for RISD Employees
Telehealth & Health discounts
$shopping rewards
What is the minimum opening deposit required for a Student Checking Account?
$25
$5
$50
$100
Which account offers no monthly service charge for RISD Employees?
SecureChecking Plus
Student Checking Account
Savings Account
Business Account
If a student wants cell phone protection and mobile banking, which account should they choose?
Student Checking Account
SecureChecking Plus
Savings Account
Business Account
What is the opening deposit required for a savings account when opened with a checking account?
$5
$25
$50
$10
Which of the following benefits is unique to SecureChecking Plus and not mentioned for Student Checking Account?
Telehealth & Health discounts
Mobile banking available
Free until age of 26
Cell phone protection
A student is 24 years old and wants to open a checking account with mobile banking and cell phone protection. Which account is most suitable for them and why?
Student Checking Account, because it is free until age 26 and offers both features.
SecureChecking Plus, because it offers shopping rewards.
Savings Account, because it has a low opening deposit.
Business Account, because it is for professionals.
