Credit & Debit Card quiz
How are credit cards and debit cards different?
A credit card can offer perks such as purchase protection
How are a credit score and credit report related?
A credit score is determined by the factors in your report
which is FALSE about what can happen if you fail to make your mortgage payments?
After one missed payment, you can lose your home
How do you avoid paying interest on your credit card (or any other loan for that matter)?
Always make the full payment on time
What information on a Schumer Box should you focus on when choosing a credit card? (hint: choose 3 correct answers)
Annual Percentage Rate (APR) Grace Period Fees
Which of the following could be a SECURED loan? (hint: choose 2 correct answers)
Auto loan Mortgage
If the collateral for your secured loan can be taken away, why get a secured loan at all?
Because they usually have a lower interest rate
How can you build a positive credit history as a college student?
Become an authorized user on an adult's card
Which of the following situations is an example of responsibly taking on debt?
Become an authorized user on an adult's card
What can debt collectors do if you don't make payments towards your loans?
Call you between 8am-9pm to talk to you about your loans
All of the following may access your credit report EXCEPT...
Colleges and universities
Jim is 23 and has 1 credit card. What would be the best way to improve his credit score? (hint: choose 2 correct answers)
Diversify his credit - get an loan for the car he needs Make sure he makes his payments in full & on time MORE
Which types of debt usually CANNOT be erased or reduced?
Federal student loans
Where do banks get the money to lend out to consumers?
From their clients' savings accounts
When can personal loans be a better option than credit cards? (hint: choose 2 correct answers)
If you want a lower interest rate & If you need a lump sum of money right away
What information can you find on a credit report?
Inquiries you've made on new lines of credit
How can having a thin file impact you?
Lenders may decline your application for a loan
Aisha wants to improve her credit utilization rate. Which of the following can she do? (hint: choose 2 correct answers)
Make several payments in the month instead of a large one Spread her spending among her 3 credit cards
Which of the following could be a SECURED loan? (hint: choose 2 correct answers)
Mortgage & Auto loan
Which of the following is NOT a typical type of credit?
Pre-Paid Debit Card
How do federal student loans differ from private student loans?
Private loan repayment may start while you're in school
Why might someone have a thin file? (hint: choose 2 correct answers)
The credit bureaus mistakenly think you have passed away You are relatively new to establishing credit
How do banks make money off of the credit they issue?
They charge a high interest rate on the loan
T/F: A negative credit event (bankruptcy) can have a WORSE impact on a higher credit score.
True
Which of the following does NOT contribute to your credit score?
Which banks issued your credit cards
Why does the amount of INTEREST you owe on a loan decrease over time?
With each payment, principal decreases, so interest lowers
Which is TRUE when you make only the minimum payment each month?
You ar charged interest on the remaining balance
Which is TRUE about Payday loans?
You are charged a 1-time fee for the loan
Which is TRUE when you make only the minimum payment each month?
You are charged interest on the remaining balance
Which of the following is TRUE about a credit report?
You can get a copy of your credit report for free
All of the following are benefits of having a good credit score EXCEPT...(hint: choose 2 correct answers)
You can get a higher return on your Retirement fund Higher interest rate on credit cards and loans MORE
Which of the following is TRUE about an auto LOAN and a LEASE? (hint: choose 2 correct answers)
You make monthly payments on both & Monthly payments tend to be lower with a lease
Which of the following is TRUE about finding errors on your credit report?
You may have to file a dispute with each credit bureau
What may NOT impact the interest rate on your loans?
Your level of education
When repaying your Federal student loans...(hint: choose 2 correct answers)
a loan servicer will contact you before repayment begins & you can choose from different repayment plans
Inquiries you've made on new lines of credit
annualcreditreport.com
True or False: Landlords are required to submit your payment history, which can boost your credit score.
false
A shorter auto loan term means ____ monthly payments & ____ total interest you'll pay.
higher, less
The cost of borrowing money is referred to as
interest
Your net worth...(hint: choose 2 correct answers)
is your assets - your liabilities is what you own minus what you owe
Using the debt snowball method, you make...
minimum payments on large loans; pay extra on small loans
Using the High Rate Method, you...
put extra money towards loans with the highest interest rate
Benefits of credit cards include:
safe and convenient, bonuses are offered allows you to build a positive credit report needed for reservations and online shopping
True or False: A cosigner's credit history can be affected by the loan they are cosigned on.
true
