Credit and debit quiz

Which of the following is NOT a feature that makes a secured loan less costly than an unsecured loan? A. A high interest rate B. Collateral C. Less risk for the financial institution D. All of these are correct

A. A high interest rate

What is NOT a benefit of having a good credit score? A. You'll get accepted to better education institutions. B. You'll get better interest rates on your loans. C. It will be easier to get an apartment. D. When you need a loan, you'll have more loan offers to pick from.

A. You'll get accepted to better education institutions.

Credit cards can help _____________ when paid off on time regularly. A. build credit history B. act as a form of identification C. lower your debt D. balance your checking account

A. build credit history

When looking for pre-approval on a car loan you should... A. compare pre-approval offers and select the one that is best for you. B. get a loan from the car dealer directly to keep things simple. C. select the loan that has the right repayment period for you. D. look for the lowest interest rates you can find.

A. compare pre-approval offers and select the one that is best for you.

Using a loan could help with the purchase of which of the following? A. A dream wedding B. A new television C. A house D. Airline tickets to your dream vacation

C. A house

What option will NOT be available if you are behind on loan payments? A. A financial institution may offer for you to pay a little now and pay the rest after your next pay day. B. You can borrow money from friends and family. C. You can ask to get out of your loan. D. Your financial institution might allow you to defer the loan but you'll have to pay the interest.

C. You can ask to get out of your loan.

Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when _____. A. Looking at your credit score B. Selecting a financial institution C. Choosing a financial advisor D. Choosing a credit card

D. Choosing a credit card

Recommended methods to protect yourself from identity theft and fraud include_______. A. Utilizing a specialty locking or monitoring service. B. Monitoring your credit report every 2-3 years. C. Allowing inaccurate information to be removed from your report after 7 years. D. Placing a credit freeze with the credit bureaus.

D. Placing a credit freeze with the credit bureaus.

All of the following are benefits to paying the full balance on your credit card each month EXCEPT: A. You won't have to pay interest. B. You won't have to pay any late fees. C. Your credit score can increase. D. Your credit score can decrease.

D. Your credit score can decrease.

What will happen to your credit score if you do not manage your debt wisely? A. You won't be able to track your credit score B. Your credit score will go up C. It will not affect your credit score D. Your credit score will go down

D. Your credit score will go down