Credit and Loans

Question 1

What is a benefit of obtaining a personal loan?

Revolt · Accepted Answer

getting money with special repayment terms

Question 2

The type of credit people are most likely to use for small purchases during their lifetime is

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a credit card.

Question 3

Which describes the difference between secured and unsecured credit?

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Secured credit is backed by an asset equal to the value of a loan, while unsecured credit is not guaranteed by a material object.

Question 4

Consumers who pay more than the minimum payment on credit cards

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pay less interest in the long run.

Question 5

What best determines whether a borrower’s interest rate on an adjustable rate loan goes up or down?

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a market's condition

Question 6

Read the scenario.Casey has been saving for a new car and is ready to make a purchase. Having a substantial amount to put down as a down payment, Casey approaches the car dealership. The salesperson and the loan officer view Casey's willingness to make a high down payment positively.Why would Casey be considered a lower risk by the lender for planning to make a high down payment?

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It shows that Casey is committed to paying off the loan.

Question 7

A way to build good credit is

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paying bills when they are due.

Question 8

Which best describes a way people can use personal loans?

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to pay for college

Question 9

principal borrowedoutstanding balanceprojected balance

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principal borrowed

Question 10

The chart shows a range of credit scores.

Revolt · Accepted Answer

find it hard to get a loan.

Credit and Loans Answers

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