Credit and Loans

Question 1

Which describes the difference between secured and unsecured credit?

Revolt · Accepted Answer

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 2

Which describes an example of using unsecured credit?

Revolt · Accepted Answer

Someone buys new gutters for a home with a credit card.

Question 3

good credita bank accounttax returns

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good credit

Question 4

A credit score is based in part on

Revolt · Accepted Answer

payment history and total debt.

Question 5

A way to build good credit is

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paying bills when they are due.

Question 6

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

Revolt · Accepted Answer

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 statement is true of both mortgages and auto loans?

Revolt · Accepted Answer

They are secured loans and generally require a down payment.

Question 9

Read the scenario.Jay and Laura have been dreaming of purchasing their first home together. They've been diligently saving and have managed to accumulate a significant sum for a down payment.How does their decision to make a larger down payment benefit their financial situation as they purchase a home?

Revolt · Accepted Answer

It decreases their monthly payment.

Question 10

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

Revolt · Accepted Answer

a market's condition

Credit and Loans Answers

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