Credit Knowledge Quiz

What is credit?

• A type of currency

• A loan you give to the bank

• The ability to borrow money with a promise to pay it back later

• A savings account

Which of the following factors most affects your credit score?

• The amount of cash you keep on hand

• Your credit card balances

• Number of bank accounts

• Your social media activity

What is a credit report?

• A document detailing your employment history

• A summary of your credit history

• A list of your current expenses

• A report on your bank account activities

What is an interest rate?

• A fee you pay to open a bank account

• The percentage of a loan charged as interest

• A yearly membership fee for credit cards

• An amount added to your savings

What is a credit score range considered to be "good"?

• 300-500

• 501-600

• 601-700

• 701-850

What is a mortgage?

• A type of insurance

• A loan specifically for purchasing a home

• A savings plan for home repairs

• A contract for renting a home

What is the purpose of a down payment when buying a home?

• To cover the cost of home insurance

• To reduce the amount of money you need to borrow

• To pay for home renovations

• To pay the real estate agent

What is a common term for the amount paid upfront when buying a car?

• Premium

• Deductible

• Down payment

• Maintenance fee

What factor should you consider when deciding on a car loan?

• The color of the car

• The length of the loan term

• The popularity of the car model

• The dealership's location

What does depreciation mean in the context of buying a car?

• Increase in a car's value over time

• Decrease in a car's value over time

• Cost of car maintenance

• Cost of car insurance