Credit and Debt

A ______ score is a number that represents your creditworthiness.

When you borrow money, the amount you owe is called ____.

________ is the fee you pay for borrowing money, usually a percentage of the amount borrowed.

It's important to make your monthly payments on ____ to avoid penalties and late fees.

The maximum amount you can borrow on a credit card is called the credit _____.

What is the term for the fee charged for borrowing money?

• Principal

• Interest

• Equity

• Balance

Which of the following can negatively impact your credit score?

• Paying bills on time

• High credit card balances

• Having a variety of credit types

• Low credit utilization

What is a common way to build credit?

• Avoid all forms of credit

• Apply for multiple credit cards at once

• Use a credit card responsibly and pay it off monthly

• Only use cash for purchases

What does it mean if you have a high credit utilization rate?

• You are using a small portion of your available credit

• You are using a large portion of your available credit

• You have a variety of credit accounts

• You have no credit accounts

What can you do to reduce debt?

• Increase spending

• Pay more than the minimum payment

• Open new credit accounts

• Close all credit accounts