Credit and Debt

To maintain a good credit socre you must __________.

manage your debt wisely

What should you NOT use a loan to purchase

Airline tickets to your dream vacation

Which item is important to consider when selecting a credit card?

Both APR and fees

Which of the following is NOT a recommended method to protect you from identity theft?

Expensive specialty locking or monitoring service

Recommended methods to protect yourself from identity theft and fraud include________.

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:

Your crdit score can decrease

Credit cards can help _________ when paid off on time regularly

Build credit history

Annual Perentage Rate (APR), credit limit, and penalties and fees are important to consider when _______.

Choosing a credit card

When looking for pre-approval on a car loan you should...

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

Which of these items is NOT important to consider when selecting a credit card?

The look of the credit card

When are loans a good option to use?

When paying for higher education

What is a benefit of having a good credit score?

When you need a loan, you'll have more loan offers to pick from.

What option will NOT be available if you are behind on loan payments?

You can ask to get out of your loan.

Which is NOT a positive reason for using a credit card to finance purchases?

You will get charged high interest

What is NOT a benefit of having a good credit score?

You'll get accepted to better education institutions.

what will happen to your credit score if you do not manage your debt wisely?

Your credit scroe will go down

The cost of secured loan is typically lower than the cost of an unsecured loan because __________.

it requires collateral

Paying only the minimum balance on your credit card can lead to...

paying more interest

Using a loan could help with the purchase of which of the following?

A house.

Which of the following will help you protect yourself from identity theft and fraud?

- Regularly monitor your credit report. - Contact lenders and credit bureaus to address incorrect information - Freeze your credit.

Secured loans are less costly than unsecured loans because ___________________.

- They usually hgave a lower interest rate. - they require collateral - they are less risky for the financial institution

Not managing your debt wisely can result in ____________.

A decrease in your credit score

What could be a good option available to you if you are behind on loan payments?

A financial institution may offer you to pay a little now and pay the rest after your next payday.

Which of the following is NOT a feature that makes a secured loan less costly han an unsecured loan?

A high interest rate

Going directly to a car dealer for a loan to keep things simple is a...

Not great because they typically offer higher interest rates.

Benefits to paying the full balance of your credit card each month include:

Not having late fees

which is a positive reason for using a credit card to finance purchases?

Paying it off on time can help build your credit history