What should you NOT use a loan to purchase?

Airline tickets to your dream vacation

When looking for pre-approval on a car loan you should ______.

compare pre-approval offers and select the one that is best for you

What option will NOT be available if you are behind on loan payments?

You can ask to get out of your loan.

What is a benefit of having a good credit score?

You'll get better interest rates on your loans.

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Credit & Debt Module 5 Review - EVERFI Financial Literacy

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Questions 10

Answers

1
Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when _____.
choosing a financial advisor
choosing a financial institution
choosing a credit card
2
To maintain a good credit score you must ______.
manage your debt wisely
have many open credit cards
pay for credit monitoring
3
Credit cards can help _________ when paid off on time regularly.
build credit history
act as a form of identification
balance your checking account
4
What should you NOT use a loan to purchase?
A car
Airline tickets to your dream vacation
A house
5
Which of the following will help you protect yourself from identity theft and fraud?
All of the above
Contact lenders and credit bureaus to address incorrect information.
Freeze your credit.
Regularly monitor your credit report.
6
When looking for pre-approval on a car loan you should ______.
select the loan that has the longest repayment period
get a loan from the car dealer directly to keep things simple
compare pre-approval offers and select the one that is best for you
7
What option will NOT be available if you are behind on loan payments?
You can ask to get out of your loan.
You can borrow money from friends and family.
A bank may offer for you to pay a little now and pay the rest later.
8
What is a benefit of having a good credit score?
Loan sharks will be less likely to bother you.
You'll get better interest rates on your loans.
You'll get more job offers.
9
Paying only the minimum balance on your credit card can lead to ______.
an increase in your credit score
paying more interest
late fees
10
The cost of a secured loan is typically lower than the cost of an unsecured loan because _______.
it requires collateral
your parents will make sure you pay it back
the loan takes longer to get

Credit & Debt Module 5 Review - EVERFI Financial Literacy Flashcards | StudBud