Credit and Loans

Question 1

A way to build good credit is

Revolt · Accepted Answer

paying bills when they are due.

Question 2

What is a benefit of obtaining a personal loan?

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getting money with special repayment terms

Question 3

What is the compound interest on a three-year, $100.00 loan at a 10 percent annual interest rate?

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$33.10

Question 4

Which best describes a way people can use personal loans?

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to pay for college

Question 5

For which buyer would a lender most likely approve a $200,000 mortgage?

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a person with a credit score of 760 with a small amount of debt who has had steady employment for many years

Question 6

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 7

The chart shows a range of credit scores.

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find it hard to get a loan.

Question 8

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 9

A credit score is based in part on

Revolt · Accepted Answer

payment history and total debt.

Question 10

Which statement is true of both mortgages and auto loans?

Revolt · Accepted Answer

They are secured loans and generally require a down payment.

Credit and Loans Answers