Question 1

Which of these are long-term impacts of having a good credit history?

Accepted Answer

It's easier to pay for major purchases like cars, houses, and education.

Answer

It gives you freedom to shop around for the best deal on tech.

Answer

It prevents you from spending money on things you want instead of things you need.

Answer

It lets you buy the things you want like clothes or cellphones.

Question 2

Why is it important to find a credit card with a lower APR?

Accepted Answer

A lower APR impacts how much you will be charged in interest

Answer

A lower APR means you have more time to pay off your balance.

Answer

A lower APR gives you a better credit history.

Question 3

What is a reason to pay more than the minimum payment due on your credit statement each month?

Accepted Answer

You save money on interest.

Answer

It hurts your creditworthiness.

Answer

It takes more time to pay off a balance.

Question 4

Which statement is correct about Annual Percentage Rate (APR)?

Accepted Answer

It is the interest rate you pay on balances you carry over from month to month.

Answer

It has nothing to do with how much interest you pay.

Answer

It stands for Amortized Percentage Rate.

Answer

It is better for the borrower if the rate is higher.

Question 5

Which is the best strategy for paying your credit card bill?

Accepted Answer

Pay the entire balance every month.

Answer

Pay the minimum payment every month.

Answer

Pay half the balance every month.

Question 6

What is the correct definition of collateral for potential cosigners?

Accepted Answer

The cosigner’s financial assets, such as a house or car

Answer

The cosigner’s credit history

Answer

The cosigner’s past record of paying on time

Question 7

WHO would be the best person to ask to cosign for a loan?

Accepted Answer

Mom or Dad

Answer

Fiance'

Answer

A close friend

Question 8

What is the best definition of a credit score?

Accepted Answer

A number that shows a snapshot of your credit at a specific moment in time

Answer

A period of time between when you spend money and when the company charges you interest

Answer

A number that shows how much of your overall credit you're using

Question 9

Which credit utilization rate would be preferable to a lender on a credit card application?

Accepted Answer

15%

Answer

20%

Answer

90%

Question 10

Which action is best if you suspect you're the victim of identity theft?

Accepted Answer

Check your credit report

Answer

Call the police

Answer

Change your phone number

Question 11

What is the difference between a credit freeze and a credit alert?

Accepted Answer

With a credit freeze, you can’t apply for any new credit, while with a fraud alert, you can.

Answer

With a credit freeze, you can apply for new credit, while with a fraud alert, you can’t.

Question 12

How many major credit bureaus are there in the U.S.?

Accepted Answer

3

Answer

1

Answer

5

Answer

100's

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