Debt Management
True or False:
If you’re using the Snowball Method, you should pay down the debt with the lowest balance first after making minimum payments on all other loans!
True!
True or False:
On a credit report, it will list the salary of your current job.
False! It does not have the salary of your current job.
True or False:
Applying for multiple credit cards in a short period of time will increase your credit score.
False! It would decrease your credit score.
True or False:
If you get a cosigner for a loan and you don't make payments, the cosigner is responsible for those missed payments.
True!
What is the hard tiny piece at the end of a shoelace called?
An Aglet
What strategy should you use to pay off multiple sources of debt if you want to pay the lowest amount of interest over time? Snowball or high rate method?
The High Rate method.
In general, why do so many different types of companies check your credit report?
They want to make sure you’re likely to make consistent and timely payments aka they want to make sure you are responsible.
Calculate the Credit Utilization if you have a credit card with a $2000 limit and your balance is $1000.
The credit utilization would be 50%.
Name one strategy to building credit at a young age.
1. Apply for credit selectively
2. Consider a secured card
3. Consider a store credit card
4. Finance an inexpensive car
In a website browser address bar, what does “www” stand for?
World Wide Web
Heather realized she has taken out too much debt and it has started to negatively impact her ability to budget. She has decided to pay off this debt in full as soon as possible. Would it be beneficial for her to apply for another credit card in case she runs out of cash?
This strategy would not be beneficial to her.
Name one company that tracks all of your credit information.
Equifax, Experian and TransUnion
What are the two most important factors in calculating your credit score?
Payment History and Amounts Owed.
Describe why it is important to establish a credit score when you are young.
You will likely need a credit history to rent your first apartment, finance your first car, or open an unsecured credit card
As of 2025, who is the largest retailer in the world?
Walmart
What are 3 steps someone can take to pay off their debt?
Gather Your Data
Make a Financial Inventory
Lower Your Interest Rates
Pay More Than The Minimum
Increase Your Income
Cut Unnecessary Spending
Create a New Budget
Create an Emergency Fund
What does the yellow 30 mean in the account history on May 2015?
This borrower was 30 days late on their May 2015 payment
Explain how your credit score impacts the total amount you pay on an auto loan.
A higher credit score = lower interest rate → pay less in total
A lower credit score = higher interest rate → pay more in total
The amount you can charge to a secured credit card is limited by…
The amount of money you deposit into an account as collateral
What is a word, phrase, number, or other sequence of characters that reads the same backward as forward?
A Palindrome
Describe what might happen if someone does not pay their federal student loans. (3 things)
Wage garnishment
Tax Refund Seizure
Credit Score Damage
An explanation of the mistake and any evidence you have supporting your claim
1. Payment History
2. Amounts Owed
3. Length of Credit History
4. Types of Credit
5. New Credit Frequency
What benefits do you receive by taking out a loan with a cosigner?
You have a better chance of getting approved and getting a lower interest rate if the cosigner has good credit
What popular candy was originally called "M&M's Fruit Chews"?
Starburst