Credit Review

1. Heather has decided to pay off this debt in full as soon as possible. All of the following would be beneficial strategies EXCEPT…

• Reducing spending by canceling some of her streaming subscriptions

• Taking extra shifts at work to increase her income

• Making more than the minimum required payment on her debt

• Applying for another credit card to use in case she runs out of cash paying off her debt

Tags

CCSS.RL.11-12.3

CCSS.RL.6.3

CCSS.RL.7.3

CCSS.RL.8.3

CCSS.RL.9-10.3

Which of the following statements about credit scores does this bar graph support?

• Credit scores tend to drop as you grow older because you are more likely to miss a payment at some point

• It is more difficult for young people to borrow because they have less payment history for a lender to rely upon

• When young people borrow, they are likely to have lower interest rates because their credit scores are lower

• It is easier for young people to get loans at lower interest rates because they are likely to have never been late with a payment

Tags

CCSS.RI.11-12.7

CCSS.RI.9-10.7

CCSS.RL.11-12.7

CCSS.RL.8.7

CCSS.RL.9-10.7

All of the following would show up on a credit report EXCEPT...

• Salary of your current job

• Payment history of your car loan

• Credit card payment history

• Student loan activity

Which of the following methods of getting your credit score would involve paying a fee?

• 1. Checking your credit card or loan statement

• 1. Talking to a non-profit counselor

• 1. Checking creditkarma.com

• 1. Getting a score from myFICO.com

Your friend confides in you that he has a low credit score. What is the single best way for him to improve his score?

• 1. Cancel his credit cards

• 1. Make on-time payments

• 1. Get a car loan

• 1. Check his credit score

Melvin is 19 years old and wants to begin establishing a credit history. Which action should he take to meet that goal?

• 1. Any time he borrows money from a friend or family member, be sure to pay it back promptly

• 1. Take out some private student loans, even though he doesn't need them because he has grants and scholarships

• 1. Ask his parents to cosign a credit card or add him as an authorized user on their credit card

• 1. Always say "credit" when asked "credit or debit?" at a store

Which of the following individuals or groups would be the LEAST likely to look at your credit score?

• 1. A bank representative who is helping you open a savings account

• 1. Someone interviewing you for a job

• 1. Credit card companies

• 1. An insurance company reviewing your applicant for auto insurance

1. Frank and Jasmere will each need a $20,000 loan that they will pay back over a five year period. Frank has a credit score of 730 and Jasmere has a score of 600. Which of the following statements is TRUE?

• 1. Over the five year period, Jasmere and Frank will pay the same amount for the car loan

• 1. Frank's monthly payment on the auto loan will be about $100 more than Jasmere's payment

• 1. Jasmere's monthly payment on the loan will be about $100 more than Frank's payment

• 1. Lenders are not allowed to charge people different interest rates based on their credit scores

Tags

CCSS.7.RP.A.3

You have a credit card that you use regularly for small purchases with the goal of improving your credit score. Which strategy would have the GREATEST positive impact?

• 1. Use less than 30% of the credit limit and pay it off in full every month by the due date

• 1. Always carry a balance from month to month

• 1. Regardless of how much your balance is, make the minimum payment required on your credit card every month by the due date

• 1. Put the credit card in a drawer instead and don't ever use it

What strategy should you use to pay off multiple sources of debt if you want to pay the lowest amount of interest over time?

• 1. Snowball method

• 1. Make minimum payments

• 1. High rate method

• 1. Consolidate multiple debts into one new loan

Tags

CCSS.7.RP.A.3