Loan and Credit Quiz

If a person has a low-interest loan with a fixed rate, what term is used to describe the amount of money they still owe before any additional fees or interest are applied?

• Principal

• Interest

• APR

• Collateral

Which of the following best describes the total amount of money that is charged in addition to the original loan amount?

• Interest

• APY

• Credit

• Principal

When determining creditworthiness for determining the FICO score, which of the following aspects is the most crucial to assess?

• Payment history

• Interest rate

• Loan type

• Credit card limit

A person applies for a loan and is asked to provide an item that can be used to secure the loan in case of non-payment. What is this item known as?

• Collateral

• Credit limit

Which of the following does NOT directly count as a financial asset in personal budgeting?

• House

• Car

• Debit card

• Cash

Credit scores are often calculated based on which of the following key elements?

• Payment history, debt ratio, and types of credit

• Your monthly income

• The number of loans you have

• How many credit cards you own

Which type of card is most commonly referred to as a debit card?

• Check card

• Charge card

• Credit card

• Cash card

A perfect credit score is the highest attainable score in most credit scoring models. What is this ideal score?

• 850

• 800

• 750

• 700

When you begin building credit, paying your balance in _____ each month helps maintain a strong credit score.

What does APY stand for in the context of savings or investments?

• Annual Percentage Yield

• Applied Percentage Yield

• Annual Percentage Yearly

• Apportioned Percentage Yield