How well did you do?
Compare your answers with the ones below
The percent of your take-home pay used for credit payments should not exceed
A. 5% B. 10% C. 20% D. 25%
A bank may refuse to offer you credit based on:
A. age B. income and credit history C. number of dependent children D. marital status
The best indicator of the cost of a loan is the:
A. number of monthly payments B. monthly payment amount C. interest rate D. loan amount
When shopping for credit cards, evaluate:
A. fees B. the way interest is compounded C. interest rates D. all of the above
A grace period is important because it:
A. allows you to skip one of your monthly payments
B. gives you a period of time during which to pay off your bill without incurring interest charges
C. allows you to charge over your approved line of credit for a month
D requires you to pay off your balance over a set period of time
The Equal Credit Opportunity Act state that:
A. consumers are protected from illegal discrimination based on race, color, religion, national origin, sex, marital status or age
B. a creditor cannot ask you to reapply, close your account or change terms of a loan if you become widowed or divorced
C. a creditor cannot turn you down for credit if your income comes from pensions, annuities or part-time income
D. all of the above
To keep credit card interest payments as low as possible:
A. try to pay off your bills in full every month
B. take out a bank loan at a lower interest rate and use the money to pay off your credit card bills
C. switch to a different credit card that has a lower interest rate
D. all of the above
If you carry a balance of $2,000 with a card that charges 18% interest, by making the minimum monthly payment of 3%, you will pay off the loan in:
A. three years B. six years C. nine years D. twelve years
Which purchase would be a wise use of credit if money were tight?
A. eating out B. going on a vacation C. buying clothes on sale D. buying a basic washer and dryer set
A person with credit problems should:
A. commit themselves not to increase the debt they already have
B. analyze their spending habits and adjust them
C. contact a local consumer credit counseling service
D. all of the above
