Credit Basics

All of the following are dangers of credit, EXCEPT:

• Overspending
• Can be dangerous in tough economic times
• Can increase your financial options
• Can be expensive

What is a credit report?

• A Report card 
• Statement of every payment ever
• nothing

True or False: Credit can lead to overspending.

• True
• False

True or false: Extreme medical bills, having unexpected bills, loss of employment and divorce are reasons why individuals file for bankruptcy.

• True 
• False

Which of the following is NOT a factor to consider when taking out a loan?

• Length of the loan
• Total Cost of the loan
• Impact of the monthly payment on your budget
• How much time it takes to receive the loan

How do you ruin your credit?

• Have someone Co-Sign your loan
• Not pay your bills
• Get a gas/Apartment card
• Cats

What do you have to have to declare bankruptcy?

• State Judge
• Defendant
• Proof
• Tears

Which of the following will increase your credit card's APR? 

• Paying the minimum. 
• Missing a credit card payment. 
• Paying off the full balance. 
• Cashing in on rewards points. 

Which of the following statements about credit scores is TRUE? 

• Credit scores  reflect how likely individuals are to repay their debts. 
• Credit Scores range from the low 300's to the mid 800's. 
• Each person has three credit scores. 
• All of the above. 

Which of the following actions can NEGATIVELY impact your credit score? 

• You disputed an item on your credit report.
• You forgot to pay the cable bill. 
• You pay all your bills in cash. 
• You use a small amount of your available credit.