Loan and Credit Quiz

What is a down payment?

• A fee for processing a loan

• An initial payment made when buying something on credit

• The total cost of a loan

• A penalty for late payment

What is a soft inquiry?

• A credit check that does not impact your credit score

• A type of loan

• A penalty for late payment

• A form of insurance

What is an unsecured loan?

• A loan that requires collateral

• A loan based on credit score and history

• A loan with a fixed interest rate

• A loan for buying a house

What is a student loan?

• A loan for buying a house

• A loan for educational expenses

• A loan with no interest

• A loan for starting a business

What is the role of a cosigner?

• To pay the loan interest

• To provide additional income information

• To offer collateral

• To guarantee loan repayment

What does a hard inquiry affect?

• Your savings account

• Your credit score

• Your loan amount

• Your interest rate

What is the main difference between a secured and unsecured loan?

• Interest rate

• Collateral requirement

• Loan term

• Loan amount

What is the term for money borrowed to help pay for a student's education that must be repaid with interest?

• Mortgage

• Student Loan

• Withdrawal Penalty

• Savings Account

What type of loan is specifically used to buy a home, where the property serves as collateral?

• Personal Loan

• Auto Loan

• Mortgage

• Student Loan

What is a withdrawal penalty?

• A fee for late credit card payments

• A fee for early withdrawal from a locked account

• A fee for overdrawing a checking account

• A fee for closing a bank account