JA Personal Finance - Week 4

There is no such thing as good debt.

• True

• False

Benefits of Credit include:

• -Easier to Make Impulse Decisions

• Terms and Conditions are Complicated

• Its easy to buy more than you can Afford

• Good to have for an emergency

Risks of Credit Include:

• Convenient

• Purchases Can Cost More if not paid off right away

• Safer to Carry than Cash

• Using credit helps build credit history

A standardized measurement of the potential for a borrower to pay off debt is:

• Credit History

• Consumer Profile

• Credit Score

• Interest

The lower your credit score the better Interest Rate you might get on a loan.

• True

• False

Which of the following look at credit scores:

• Banks and Insurance Companies

• Landlords and Utility Companies

• Employers

• All of the Above

The following are good ideas for healthy credit:

• Get as many new credit cards as possible

• Help a family member by co-signing for a loan

• Pay the minimum on your credit card each month

• None of the above

If you need to make a purchase, the best choice to pay for it is:

• Installment Loan

• Payday loan

• Savings

• Credit Card