Loans

1. Why do lenders look at credit reports?

• 1. To determine the size of your household

• 1. To provide them with details about your savings account

• 1. To decide whether you are a qualified or risky candidate for credit

• 1. To edit your credit score

3. What should you do if you find errors in your credit report?

• 1. Close the affected credit account(s)

• 1. Contact the credit reporting agency or the company that provided the information

• 1. Call the police to notify them of potential fraud

• 1. Report the error on your taxes

Which of the following credit scores is considered GOOD?

• 450

• 300

• 850

• 700

3. It’s beneficial to use some of your available credit because…

• 1. The interest you’ll be charged goes up for every month you don’t use any credit

• 1. Banks require you to use some form of credit in order to have an account with them
     
     

• 1. It shows you can responsibly use credit and builds your credit history

• 1. Employers are less likely to hire you if you don’t have a balance on your credit card

2. Jane needs a cosigner for her loan. Which person would be the best for her to ask to be her cosigner?

• 1. Her neighbor, who says sharing the loan will allow him to remodel his garage at the same time

• 1. Her sister, who shows her she has a credit score of 735

• 1. Her grandfather, who lives on a tight budget

• 1. Her cousin, who has several fancy cars and must be rich

3. It’s beneficial to use some of your available credit because…

• 1. The interest you’ll be charged goes up for every month you don’t use any credit

• 1. Banks require you to use some form of credit in order to have an account with them
     
     

• 1. It shows you can responsibly use credit and builds your credit history

• 1. Employers are less likely to hire you if you don’t have a balance on your credit card

Stafford loans, Perkins loans, and Plus loans are all __________________ from the government.

• alternative loans
• federal loans
• scholarships
• grants

The time between when you graduate and when you must begin repayment of student loans

• subsidized
• award letter
• grace period
• unsubsidized

Which federal loans are available for parents to take out for their children's education?

• Perkins Loans
• Direct PLUS Loans
• Subsidized Direct Loans
• Unsubsidized Direct Loans

A subsidized loan is when ____________________ pays the interest while you are in school, while an unsubsidized loan is when ___________________ pays the interest while you are in school.

• the government; parents
• the borrower; parents
• the borrower; the government
• the government; the borrower