Understanding Credit and College Funding

Why is it important to establish a positive credit history?

• It helps you avoid paying taxes.

• It allows you to borrow money at lower interest rates.

• It guarantees you will never be in debt.

• It ensures you will always have a job.

Tags

TEKS.MATH.6.14D

What is a credit report?

• A list of all your bank accounts.

• A record of your borrowing and repayment history.

• A summary of your monthly expenses.

• A document that shows your annual income.

Tags

TEKS.MATH.6.14E

How long is information typically retained in a credit report?

• 1 year

• 3 years

• 7 years

• 10 years

Tags

TEKS.MATH.6.14E

What is one key difference between debit cards and credit cards?

• Debit cards allow you to borrow money from the bank.

• Credit cards require you to have a savings account.

• Debit cards use money directly from your bank account.

• Credit cards do not have spending limits.

Tags

TEKS.MATH.6.14B

Which of the following is a method to pay for college?

• Using a credit card

• Applying for scholarships

• Taking out a mortgage

• Buying stocks

Tags

TEKS.MATH.6.14G

Why are credit reports valuable to lenders?

• They show how much money you have in savings.

• They provide a history of your borrowing and repayment habits.

• They list your current job and salary.

• They predict future stock market trends.

Tags

TEKS.MATH.6.14F

What is one benefit of having a positive credit history?

• Higher interest rates on loans

• Easier approval for rental applications

• More frequent bank fees

• Increased taxes

Tags

TEKS.MATH.6.14D

Which of the following is NOT typically included in a credit report?

• Your credit card balances

• Your employment history

• Your medical history

• Your payment history

Tags

TEKS.MATH.6.14E

What is a common feature of student loans?

• They must be repaid immediately after borrowing.

• They often have lower interest rates than other loans.

• They are only available to students with perfect credit.

• They do not require any repayment.

Tags

TEKS.MATH.6.14G

How can a borrower improve their credit score?

• By closing all credit accounts

• By making payments on time

• By applying for multiple credit cards at once

• By avoiding all forms of credit

Tags

TEKS.MATH.6.14D