Credit Test Review

Which of the following is not an example of using your credit card responsibly?

• using your card for all purchases because it's safer and easier than using cash and checks

• only using it to buy items that you can afford

• paying your entire balance by the due date each month

• saving all receipts and checking your statement carefully for errors each month

What do Equifax, Experian, and TransUnion have in common?

• Like the World Bank, they are part of the United Nations.

• They are the country's most successful creditors.

• They examine and supervise financial institutions that are not members of the Federal Reserve System.

• They are consumer credit reporting companies.

A credit report covers your financial history for the past ________ years.

• 7 to 10

• 3 to 5

• 1 to 3

• 5 to 7

You can get ________ credit from businesses and use it to buy things.

• retail

• bank

• sales

• cash

What's a basic type of credit that lets you borrow money?

• bank credit

• sales credit

• bank loan

• cash credit

You ________ interest on debt.

• charge

• earn

• should ignore

• pay

What kind of interest is calculated by using this formula: P x r x t ?

• compound interest

• simple interest

• all kinds of interest

• average daily interest

Which statement below is not true?

• Medical bills can lead to excessive debt.

• Some debt is inevitable over the course of your life.

• As long as you can pay your card's monthly minimum payment, you won't get excessive debt.

• all of the above

________ is not a positive step for establishing credit.

• Earning a paycheck

• Staying in school

• Paying rent

• Paying bills on time

This type of bankruptcy is consider a “fresh start”, by wiping out most of your debt.

• Chapter 1

• Chapter 13

• Chapter 5

• Chapter 7