Credit Quiz

Last updated 11 months ago

22 questions

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Library

Credit Quiz

Last updated 11 months ago

22 questions

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

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Lilly has a platinum credit card with her bank. She goes to Greece for vacation and spends $400. If Lilly pays the balance in full, how much interest will she owe?

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List 2 factors you should consider when applying for a credit card.

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2

Why would a creditor trust someone with a long credit history vs someone who has never borrowed before?

Which of the following affects your credit score?

making payments late or missing a payment

making payments on time

having several credit cards and 2 are maxed out

all of the above will impact my credit score

What is the highest FICO credit score a person can receive?

700

850

300

1050

Credit Card A: has an introductory rate of 1.8%; After 6 months the APR jumps to 12% Credit Card B: has an introductory rate of 0%; After 9 months the APR jumps to 26% Credit Card C: has an introductory rate of 0%; After 3 months the APR jumps to 19% * You are applying for a credit card to use for your month-long trip to China. You have budgeted $1000 for the trip. You have looked at your budget and you are confident that you will be able to pay off your credit card for the trip in 4 months. What credit card offer is best for this particular purpose?

Credit Card B

Credit Card A

Credit Card C

When you go to select financing for a loan, you will be looking at:

Amount of Monthly Payments

Length of Loan

Interest Rate

When calculating one’s credit score, ______________ is the largest percentage category of how an individual’s score is calculated:

Outstanding Debt

Pursuit of New Credit

Payment History

Credit History and Length

In addition to her home, Julie's camper, Ford Focus, and designer purse collection would be viewed as _____________, property pledge as repayment of a loan, by the bank if we were to default on his new mortgage loan that he received:

Character

Credit History

Collateral

Capacity

Which of the following information can you find in a Schumer Box? (Check all that apply)

Current Balance

Fees and Penalties

APR (Annual Percentage Rate)

Minimum Interest Charge

Which of the following information can you find on your credit card statement? (Check all that apply)

current balance

minimum payment due

summary of account activity

collateral

All of the following are good reasons Alyssa could use a credit card except:

It helps her save money by offering her a discount at a store she regularly shops at.

Purchasing a bed when she moved out

Overspending at Ulta

Establishing a good credit rating

If you only make the minimum payment on your credit card it will _____________. (Select all that apply)

cost you less in the long run

take you less time to pay off the card

lower your debt credit ratio

take you longer to pay off the card

An Installment Loan is: (Check all that apply)

typically issued for purchases such as houses or cars

used to finance a specific purchase for a specific amount of time. Regular payments are made to pay the interest and the principal.

A Kohls Credit Card

an open line of credit that can be used for any purchases as long as you’re under the credit limit.

Which of the following does NOT impact your credit score? (Check all that apply)

Which of the following actions would NOT cause you to be charged a fee? (Select all that apply)

Extra one time payment this month

Late payment

Balance Transfers

Cash Advance

Match the following

	the maximum amount of money a lender will allow you to spend on a credit card or a line of credit	a table that appears in credit card agreements. The box displays basic information about the card's rates and fees.	money paid for the use of money borrowed or invested	the smallest amount your credit card issuer will accept toward your credit card balance each month
credit limit
interest
Schumer Box
minimum payment

Match the following

	a debtor, borrows money from a lender with the prmise to repay with interest.	a contract agreement in which a borrower receives a sum of money or something of value and repays the lender at a later date, generally with interest	a number assigned to a person based on their credit history that indicates to lenders their capacity to repay a loan. Also called a FICO score.	a lender, typically a financial institution that lender money to a person who agrees to pay them back with interest.
credit
creditor
borrower
credit score

Match the types of credit to their definitions

	An open line of credit that can be used for any purchases as long as youre under the credit limit. Payment amounts vary each pay period based on the size of the debt.	Debt is tied to a specific asset that can be used as collateral and repossessed if borrower doesn't make payments	Used to finance a specific purchase for a specific amount of time. Regular payments are made.	Debt is NOT tied to a specific asset. There is no collateral that can be repossessed if borrower defaults.
Installment loans
Revolving Credit
Secured Debt
Unsecured Debt

A sign of debt problems is only being able to make the minimum monthly payments on bills.

True

False

A high debt to credit ratio will negatively impact your credit score

True

False

When selecting a credit card, you should always choose a card with the lowest introductory rate.

True

False

Lilly has a platinum credit card with her bank. She goes to Greece for vacation and spends $400. If Lilly pays the balance in full, how much interest will she owe?

List 2 factors you should consider when applying for a credit card.

Why would a creditor trust someone with a long credit history vs someone who has never borrowed before?

Which of the following affects your credit score?

making payments late or missing a payment

making payments on time

having several credit cards and 2 are maxed out

all of the above will impact my credit score

What is the highest FICO credit score a person can receive?

700

850

300

1050

Credit Card A: has an introductory rate of 1.8%;  After 6 months the APR jumps to 12% 
Credit Card B: has an introductory rate of 0%; After 9 months the APR jumps to 26%
Credit Card C: has an introductory rate of 0%; After 3 months the APR jumps to 19%
 
* You are applying for a credit card to use for your month-long trip to China. You have budgeted $1000 for the trip. You have looked at your budget and you are confident that you will be able to pay off your credit card for the trip in 4 months. What credit card offer is best for this particular purpose?

Credit Card B

Credit Card A

Credit Card C

When you go to select financing for a loan, you will be looking at:

Amount of Monthly Payments

Length of Loan

Interest Rate

When calculating one’s credit score, ______________ is the largest percentage category of how an individual’s score is calculated:

Outstanding Debt

Pursuit of New Credit

Payment History

Credit History and Length

In addition to her home, Julie's camper, Ford Focus, and designer purse collection would be viewed as _____________, property pledge as repayment of a loan, by the bank if we were to default on his new mortgage loan that he received:

Character

Credit History

Collateral

Capacity

Which of the following information can you find in a Schumer Box?  (Check all that apply)

Current Balance

Fees and Penalties

APR (Annual Percentage Rate)

Minimum Interest Charge

Which of the following information can you find on your credit card statement? (Check all that apply)

current balance

minimum payment due

summary of account activity

collateral

All of the following are good reasons Alyssa could use a credit card except:

It helps her save money by offering her a discount at a store she regularly shops at.

Purchasing a bed when she moved out

Overspending at Ulta

Establishing a good credit rating

If you only make the minimum payment on your credit card it will _____________. (Select all that apply)

cost you less in the long run

take you less time to pay off the card

lower your debt credit ratio

take you longer to pay off the card

An Installment Loan is: (Check all that apply)

typically issued for purchases such as houses or cars

used to finance a specific purchase for a specific amount of time. Regular payments are made to pay the interest and the principal.

A Kohls Credit Card

an open line of credit that can be used for any purchases as long as you’re under the credit limit.

Which of the following does NOT impact your credit score?
(Check all that apply)

length of credit history

payment history

your address

amount owed (debt to credit ratio)

your gender

Which of the following actions would NOT cause you to be charged a fee? (Select all that apply)

Extra one time payment this month

Late payment

Balance Transfers

Cash Advance

Match the following

the maximum amount of money a lender will allow you to spend on a credit card or a line of credit

a table that appears in credit card agreements. The box displays basic information about the card's rates and fees.

money paid for the use of money borrowed or invested

the smallest amount your credit card issuer will accept toward your credit card balance each month

credit limit

interest

Schumer Box

minimum payment

Match the following

a debtor, borrows money from a lender with the prmise to repay with interest.

a contract agreement in which a borrower receives a sum of money or something of value and repays the lender at a later date, generally with interest

a number assigned to a person based on their credit history that indicates to lenders their capacity to repay a loan. Also called a FICO score.

a lender, typically a financial institution that lender money to a person who agrees to pay them back with interest.

credit

creditor

borrower

credit score

Match the types of credit to their definitions

An open line of credit that can be used for any purchases as long as youre under the credit limit. Payment amounts vary each pay period based on the size of the debt.

Debt is tied to a specific asset that can be used as collateral and repossessed if borrower doesn't make payments

Used to finance a specific purchase for a specific amount of time. Regular payments are made.

Debt is NOT tied to a specific asset. There is no collateral that can be repossessed if borrower defaults.

Installment loans

Revolving Credit

Secured Debt

Unsecured Debt

A sign of debt problems is only being able to make the minimum monthly payments on bills.

True

False

A high debt to credit ratio will negatively impact your credit score

True

False

When selecting a credit card, you should always choose a card with the lowest introductory rate.

True

False