Credit Score and Financial Literacy Quiz

Which of the following would have the most POSITIVE impact on your credit score?

• Close any credit cards you're no longer using

• Spend more money on each of your credit cards

• Take out a car loan for $18,000 or more

• Make all payments on time, and focus on paying down any credit cards that are close to their credit limit

Which of the following would impact your credit score?

• The number of times you choose “credit” when given a choice between “debit and credit” at a register

• Your debt-to-credit ratio (credit utilization)

• If you buy items at full price or at a discounted price when using credit

• The types of items you're buying using credit

These high school seniors each bought $1500 of stuff to bring to college with them in the fall. Each one used a credit card with similar terms to make their purchases. Who will pay the LEAST interest for their purchases?

• Stephan, who pays the first $1000 using graduation money and then pays $250 per month until the debt is $0

• Jasmine, who had saved the $1500 previously and pays off the whole balance once her bill comes

• Nelson, who makes the minimum monthly payment each month until the debt is $0

• Robert, who makes $300 payments per month until the debt is $0

A mortgage and a car loan qualify as a(n) ________.

• Closed-end loan

• Open-end loan

• Open-to-Close loan

• Close-to-Open loan

Which of the following transactions will REDUCE your checking account balance immediately?

• Writing a check for your rent, which you will drop in the mail tomorrow

• Using your debit card to pay for groceries at the supermarket

• Using your credit card to pay for your school books

• Depositing a check at a local bank branch

How can your credit score impact your financial situation?

Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be.

• A high credit score will mean higher rates of return on your investments

• A low credit score will mean lower ATM and overdraft fees

• Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be

• If you have no credit history, you're automatically approved for loans you may need

Which statement best describes the difference between a debit and credit card?

• Debit cards have low interest rates while credit cards have high interest rates

• Debit cards spend money from your own checking account while credit cards take out a loan from the credit company

• Debit cards are better to use in stores while credit cards are better for shopping online

• Debit cards allow you to view all your transactions online while credit cards only show your available credit limit

Which of the following accounts would be best for setting aside $1,000 if you did not need access to the money for a number of years AND wanted to earn the highest interest rate?

• Online savings account

• Checking account

• Traditional savings account

• Certificate of deposit

(a)   is a word used to describe something of value that a borrower might use when getting a loan. If the borrower fails to pay, they will lose that item.