Credit
Once you turn 18, you can request ________ credit report(s) per year for free.
A. Two
B. Zero
C. Four
D. One
D. One
What type of asset is a home?
A. Depreciating
B. Decreasing
C. Appreciating
D. Agressive
C. Appreciating
The smallest amount of a credit card bill that a credit card holder must pay during a billing cycle to remain in good standing with the lender
A. Maximum Payment
B. $1
C. Minimum Payment
D. Balance Past Due
C. Minimum Payment
The cost you pay each year to borrow money, including fees, expressed as a percentage:
A. APR
B. FICO
C. Credit
D. Debit
A. APR
The numerical representation of an individual's creditworthiness:
A. Credit Report
B. Interest Rate
C. Credit Score
D. Grade
C. Credit Score
Which type of card charges interest on balances?
A. Credit Card
B. Debit Card
C. Prepaid Debit Card
D. Gift Card
Leasing a car is a very inexpensive way to drive a car.
True or False
False
Which of the following would be considered a depreciating asset?
A. Home
B. Car
C. Jewelry
D. Van Gogh Painting
B. Car
The interest rate on a loan determines.....
A. How much money you need to borrow
B. How much you will pay the bank in addition to the loan amount
C. How quickly your money will grow over time
B. How much money you will pay the bank in addition to the loan amount
Loan used to finance the purchase of a home.
A. Mortgage
B. Auto Loan
C. Personal Loan
D. Line of Credit
A. Mortgage
What is credit?
A. Obtaining the use of money that you do not have
B. Buying something with cash
C. Saving money at a commercial bank
D. Saving money at a credit union
A. Obtaining the use of money that you do not have
A document with information about a person's credit activity and history is called.....
A. Credit Score
B. Transcript
C. Credit Report
D. Credit Card Bill
C. Credit Report
Your credit score can range from:
A. 0 - 850
B. 250 - 750
C. 100 - 850
D. 300 - 850
D. 300 - 850
Which of the following will result in paying the LARGEST amount of interest on your credit card?
A. Paying 20% of your balance each month
B. Making the minimum payment each month
C. Paying off your balance each month
B. Making the minimum payment each month
Your FICO score is based on all of the following categories except:
A. Payment History
B. Amounts Owed
C. Gender and Marital Status
D. Amount of current debt
C. Gender and Marital Status
The maximum amount that may be borrowed on a credit card.
A. Credit Minimum
B. Minimum Payment
C. Credit Limit
D. Maximum Payment
C. Credit Limit
Original amount of money borrowed, separate from interest and fees
A. Principal
B. APR
C. Interest Rate
D. FICO
A. Principal
Which type of credit is where you make monthly payments on an original loan amount until it is paid off?
A. Installment
B. Revolving
C. Personal
D. Card
A. Installment
What is an advantage of paying your credit card bill off in full each month?
A. You will lower your credit score
B. You will pay more interest
C. You will pay less interest
D. You will avoid interest and fees
D. You will avoid interest and fees
Which of the following is NOT one of the three credit bureaus?
A. Equifone
B. Experion
c. Equifax
D. TransUnion
A. Equifone
Which type of loan requires collateral?
A. Secured loan
B. Unsecured loan
C. Credit Card loan
D. Appreciating loan
A. Secured loan
Which is NOT an example of an unsecured loan?
A. Mortgage
B. Credit Card
C. Student Loan
D. Personal loan for a vacation
A. Mortgage
A hard inquiry does not affect your credit score.
True or False
False
Bob has a credit score of 568 and Cara has a credit score of 735. Both individuals are applying for a new credit card. Which person will receive a higher interest rate on their credit card?
Bob
If a company wants to run my credit report in order to send me promotional information about a credit card offer, what type of inquiry would that be?
A. Hard Inquiry
B. Soft Inquiry
C. Equifax
D. TransUnion
B. Soft Inquiry