All of the following are ways to build your credit EXCEPT?

Use cash or debit and avoid credit

Get credit for the bills you pay

What is a "down payment" in the context of auto loans?

A portion of the vehicle's purchase price paid upfront.

Monthly fee charged by the dealership for maintenance.

Additional charge for customizing the vehicle's features.

Refundable deposit made to secure the loan.

A percentage of the total loan paid in addition to the purchase price.

Which of the following will lower the overall cost of your auto loan?

Obtaining a higher interest rate

Applying for a loan with no credit history

Why do dealerships tend to emphasize monthly payments over other loan factors?

To shift focus away from total cost and interest rates.

To make the purchasing process easier to understand.

To showcase the variety of available vehicle options.

To be able to sell cars at lower interest rates.

What is a key difference between a loan and a lease when buying a car?

Ownership: With a loan, you own the car at the end of the term, while with a lease, you return the car to the dealer.

Duration: Loans usually have longer terms compared to leases.

Maintenance Responsibility: With a lease, the dealer often covers maintenance costs, whereas with a loan, the owner is responsible for maintenance.

Nothing: A lease and a loan are essentially the same thing.

What is a payday loan?

A short-term, high-interest loan typically due on the borrower's next payday

A government-sponsored financial aid program

A no-interest loan provided by employers

What is an outstanding balance?

The amount you still owe after you have made your most recent payment

The amount you paid in your minimum payment

The amount you still have available in your line of credit

Why is it more difficult to get out of debt when only paying the minimum payment?

You pay such a small amount that your payment can't outpace the compounding interest on your debt.

You pay such a small amount that the credit card company uses your payment for lunch.

Your credit limit always resets, so you have a lot of spending power each month

It's not. Paying only the minimum payment will help you pay off your credit cards faster.

The details of any loan will include the following 3 components:

The principal, the interest rate, and the loan term

The money you pay, the money the lender pays, and the principal

The mortgage, the auto loan, and the small business loan

The loan amount, the credit card payment, and the statement

Credit score, income, and assets.

The amount of time you have to repay the loan

The interest rate added to your loan

The conditions for getting a loan

The total amount paid by the borrower

The yearly cost of borrowing money, including fees and interest

A fixed amount paid each month on a loan

The total amount you borrow before interest

The minimum credit score required to get a loan

The grace period before a loan starts

What is a credit report?

A detailed history of how you’ve used credit and paid debt

A document that estimates how much money you’ll make

A report card from your bank showing savings

A summary of your taxes and income

A list of everything you bought in the last year

Why do most borrowers only pay attention to the monthly payment?

It’s easier to focus on the short-term cost than the total loan

It shows exactly how much interest they’re paying

They always choose the payment with the most rewards

They don’t care how long the loan takes to pay off

It’s the only number the lender is required to show

The loans that are most profitable for lenders tended to have:

Longer terms and lower monthly payments

Shorter terms and higher monthly payments

Shorter terms and lower monthly payments

Variable interest rates and low credit limits

What is the biggest risk to a borrower in taking out an adjustable-rate loan?

Their monthly payments can increase if interest rates go up

They must pay off the full loan before any interest is charged

They are never allowed to refinance

They will not be able to get another loan in the future

Their credit score automatically drops

Which of these is an advantage of raising your credit score? CHECK ALL THAT APPLY

You may get approved more easily for loans or apartments

You will receive better interest rates when you borrow money

Your taxes will automatically be lower

You’ll never have to make a down payment again

You can switch banks without fees

Money you borrow with the promise to pay back, usually with interest

A gift from a bank that you don’t need to repay

A way to avoid paying for things up front permanently

What is the loan "principal"?

The original amount of money borrowed before interest

The total amount paid over the life of the loan

The interest charged each month

The payment due at the end of the loan

The bank’s profit on the loan

What is the typical term for an auto loan?

automotive financial impact assessment term

Who gives student loans?

the federal government or private institutions

Where would you likely find a "Buy Now, Pay Later" Loan?

When making an online purchase.

What is the "loan principal"?

The original amount borrowed before interest or fees are added.

The total amount paid at the end of a loan, including interest and fees.

The total interest charged on a loan.

The monthly payment required to pay off a loan.

Which of the following is unique to a credit card and not typically associated with a debit card?

You pay interest on unpaid balances

Directly linked to a checking account

Involves pre-loaded funds for spending

Which of the following statements comparing credit and debit cards is TRUE?

With debit cards, you're spending your own money at point of sale, but with credit cards, you're getting a loan that you need to pay back later

Far more businesses accept credit cards than debit cards

Credit cards pull money directly from your bank account, while debit cards get their money from Visa or Mastercard

Credit card companies provide you with a monthly statement, while debit cards do not

What is an advantage of using a credit card?

You can make an emergency purchase that you otherwise don’t have the money to pay for right now

It will not affect your credit score or credit history

Since it is tied directly to your checking account, it prevents you from spending money you do not have

If you need to carry a balance, the interest rates are generally quite low (less than 5%)

Select the statement below that accurately describes a characteristic of a credit card.

Making full payments on-time every month is the only way to avoid interest charges

You owe the same payment every month

You must have money deposited into a checking account to use the credit card for purchases

Which of the following statements is true about this Schumer Box?

A 28.99% APR may be applied to your account for late payment

Depending on your creditworthiness, the APR for a borrower will always either be 8.99%, 10.99% or 12.99%

There is an introductory APR that is valid only for 1 year, but then the permanent APR is lower than that at 8.99%.

You will never be charged an APR higher than 14.99%

Why would credit card companies prefer that their cardholders make the minimum monthly payment every month rather than paying their total balance in full?

This enables the credit card company to make more money

This is required by federal law for tax purposes

This allows the card holder to pay their bill quickly and close the card when they’re ready

This helps cardholders develop financial independence

Which of the following is unique to a debit card and not typically associated with a credit card?

Access to funds from the cardholder's account

Accumulation of reward points with every transaction

Borrowing money with interest charged

What is a grace period?

The amount of time you have to pay off a debt without incurring interest or penalties.

The total amount of money you owe on a credit card.

The minimum payment required by a lender each month.

The period when a credit card is temporarily inactive.

CREDIT FINAL

Authored by Aaron Antram

others

Used 4+ times

AI Actions

Add similar questions

Adjust reading levels

Convert to real-world scenario

Translate activity

More...

Content View

Student View

63 questions

Show all answers

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What should you do if you can’t pay your credit card bill?

Ignore it and hope it goes away.

Call the credit card company to discuss payment options.

Use another credit card to pay it.

Change your name and move to Pocatello, Idaho.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the best way to use a credit card responsibly?

Only buy things you can afford to pay back.

Use it to buy as much as you want.

Never pay the bill and keep borrowing money.

Use as much credit as you can to increase our credit score.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which best describes the difference between secured and unsecured loans?

Secured loans require collateral, while unsecured loans do not.

Secured loans have a higher interest rate than unsecured loans.

Secured loans are only available to individuals with good credit, while unsecured loans are available to anyone.

Secured loans do not require a credit check, but unsecured loans do.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Elliott renovates his home using a loan that requires him to sign over the title to his car if he doesn't pay as promised. What type of loan does Elliott have?

Unsecured loan

Auto loan

Secured loan

Payday loan

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which type of financial aid is considered free money?

Loans

Grants

Work-study

Scholarships

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main benefit of taking out a federal student loan instead of a private loan?

Federal student loans offer lower interest rates and more flexible repayment options.

Federal student loans do not need to be repaid after graduation.

Federal student loans offer more money than private loans.

You will have a higher interest rate for a federal student loan.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the best way to stay out of debt?

Continuously take out personal loans to cover expenses.

Rely on credit cards for all of your purchases and pay them off at the end of the month.

Spend only what you can afford and avoid using credit cards for unnecessary purchases.

Borrow money from friends and family whenever you need it.

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever

or continue with

Microsoft

Apple

Others

Already have an account?

Similar Resources on Wayground

64 questions

Acids, Bases, and Solutions - Practice Test

Quiz

•

KG - University

60 questions

m.1 A An the no article

Quiz

•

7th Grade

64 questions

Unit 3 Test Review

Quiz

•

KG - University

61 questions

atmosphere(composition/layers/weather/climate)

Quiz

•

KG - University

66 questions

Personal Finance Final Exam

Quiz

•

KG - University

60 questions

Med Core 1 Review

Quiz

•

10th Grade - University

62 questions

Particles of Matter

Quiz

•

KG - University

60 questions

Spring Final Exam Review

Quiz

•

KG - University

Popular Resources on Wayground

7 questions

History of Valentine's Day

Interactive video

•

4th Grade

15 questions

Fractions on a Number Line

Quiz

•

3rd Grade

20 questions

Equivalent Fractions

Quiz

•

3rd Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

$fractions$

22 questions

fractions

Quiz

•

3rd Grade

15 questions

Valentine's Day Trivia

Quiz

•

3rd Grade

20 questions

Main Idea and Details

Quiz

•

5th Grade

20 questions

Context Clues

Quiz

•

6th Grade

Discover more resources for others

7 questions

History of Valentine's Day

Interactive video

•

4th Grade

15 questions

Fractions on a Number Line

Quiz

•

3rd Grade

20 questions

Equivalent Fractions

Quiz

•

3rd Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

$fractions$

22 questions

fractions

Quiz

•

3rd Grade

15 questions

Valentine's Day Trivia

Quiz

•

3rd Grade

20 questions

Main Idea and Details

Quiz

•

5th Grade

20 questions

Context Clues

Quiz

•

6th Grade

CREDIT FINAL

What should you do if you can’t pay your credit card bill?

What is the best way to use a credit card responsibly?

Which best describes the difference between secured and unsecured loans?

Elliott renovates his home using a loan that requires him to sign over the title to his car if he doesn't pay as promised. What type of loan does Elliott have?

Which type of financial aid is considered free money?

What is the main benefit of taking out a federal student loan instead of a private loan?

What is the best way to stay out of debt?

Which of the following types of credit typically has the LOWEST interest rate?

All of the following are ways to build your credit EXCEPT?

The average APR for a payday loan is closest to …

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for others