
Unit 3 Part 2_ Managing Credit- Unit Test
Authored by Andrew King
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9th - 12th Grade
Used 21+ times

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15 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
1. What are the two most important factors in calculating your credit score?
Payment history and types of accounts
Amounts owed and length of credit history
Payment history and total debt
Length of credit history and new credit inquiries
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
2. Heather realized she has taken out too much debt and it has started to negatively impact her ability to budget. She 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
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
3. How can your credit score impact your financial well-being?
Only consumers with high scores are approved for credit
Consumers with low scores get lower interest rates on loans than those with high scores
Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be
It generally has no impact on your financial situation
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
4. Frank and Jasmere are each shopping for a new car for themselves. Each will 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?
Over the five year period, Jasmere and Frank will pay the same amount for the car loan
Frank's monthly payment on the auto loan will be about $100 more than Jasmere's payment
Jasmere's monthly payment on the loan will be about $100 more than Frank's payment
Lenders are not allowed to charge people different interest rates based on their credit scores
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
5. What strategy should you use to pay off multiple sources of debt if you want to pay the lowest amount of interest over time?
Snowball method
Make minimum payments
High rate method
Consolidate multiple debts into one new loan
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
6. Who tracks all of your credit information?
Credit reporting agencies (Equifax, Experian and TransUnion)
Federal government
Consumer Financial Protection Board (CFPB)
Lenders
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
7. Which of the following things should you have ready when contacting a credit reporting agency to report an error on your credit report?
Your preferred payment method to pay for fixing the error
A list of all of your financial accounts and balances
An explanation of the mistake and any evidence you have supporting your claim
References from a non-family member vouching for your creditworthiness
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