Answers2102371-Personal Finance and Money Management - Edgenuity TeacherCredit and Loans

Understanding Credit Answers

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1
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Fido wants to buy a new car. He will need to get a car loan. Fido decides to wait for a few months until his credit history improves. Which explains whether Fido is making a sensible decision?

A
Fido’s decision is sensible because the selling price of the car should be less in a few months.
B
Fido’s decision is sensible because the cost of the car loan should be less if his credit history improves.
C
Fido’s decision is not sensible because he needs the car right away.
D
Fido’s decision is not sensible because it does not matter if he buys the car now or in a few months.
2
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Lois bought clothing at a store. She did not have enough in her bank account to pay for the purchase. After receiving the bill and paying off the balance, she realized that she paid $9.69 in interest. Which statement is true about her method of payment?

L
Lois used a debit card to make the purchase.
L
Lois used a credit card to make the purchase.
L
Lois either used a debit card or used a credit card and paid the balance in full when the bill arrived.
L
Lois either used a debit card or used a credit card and made a single payment.
3

Simon used a credit card to buy a skateboard. Which statement is true about his method of payment?

A
Simon paid cash at the store.
B
Simon used money directly from his bank account.
C
Simon will receive the bill later.
D
Simon made the purchase with money he saved.
4

Tyler is using a credit card to purchase a television. Which of the following should Tyler expect? Check all that apply.

A
to have the full amount available in his bank account right away
B
to receive a bill at a later date
C
to be able to pay for it over time
D
to write a check
E
to pay interest if he does not pay in full by a certain date
5

Pete is trying to get a loan. He has a credit score of 480. How is Pete’s lender likely to view this credit score?

A
Pete is responsible and will pay the loan back on time.
B
Pete is responsible but will not pay the loan back on time.
C
Pete is irresponsible but will pay the loan back on time.
D
Pete is irresponsible and will not pay the loan back on time.
6

A lender is assessing customers for loans. The credit scores of four customers are below.IdaCorrineBruceRoland820550390610Which person will the lender assess as having the lowest risk?

A
Ida
B
Corrine
C
Bruce
D
Roland
7

Which information is found on a credit report?

g
grade point average
l
list of schools attended
n
names of family members
c
credit account history
8

Before applying for a credit card, Jacob examines his credit report. Which explains why Jacob might examine his credit report?

t
to determine which company has the best credit card features
t
to determine if he has a history of good credit
t
to determine if he needs a credit card
t
to determine his credit limit
9

Kenya used a debit card to buy a pair of jeans. Which statement is true about her method of payment?

K
Kenya used money directly from her bank account to buy the jeans.
K
Kenya borrowed the money to buy the jeans.
K
Kenya did not have enough money in her bank account to buy the jeans.
K
Kenya will pay for the jeans over time.
10

This year, Mr. Thomas has a higher credit score than he did last year. Which of the following should Mr. Thomas expect with the improved score? Check all that apply.

A
a more difficult time borrowing money to buy a house
B
an easier time getting a car loan
C
an easier time renting an apartment
D
a denial when opening a bank account
E
higher interest rates on credit cards
11

Kendrick is planning to buy a house. Which explains why he should establish a positive credit history before buying the house?

A
He will get the house for a lower price.
B
It will be easier for him to get a loan to buy the house.
C
He will be able to get a higher interest rate when buying the house.
D
He will be able to find a house he likes more quickly.
12

Which helps to establish a negative credit history?

A
Make payments on or before the due date.
B
Never miss a payment.
C
Pay off the full amount with the first monthly statement.
D
Pay less than the minimum amount due.
13

Before giving a loan to a customer, a lender examines the customer’s credit report. Which explains why the lender examines the customer’s credit report?

A
to determine if the customer is a likeable person
B
to determine the customer’s income
C
to determine the customer’s job title
D
to determine if the customer is likely to pay back the loan
14

Simon used a credit card to buy a skateboard. Which statement is true about his method of payment?

A
Simon paid cash at the store.
B
Simon used money directly from his bank account.
C
Simon will receive the bill later.
D
Simon made the purchase with money he saved.
15

Before applying for a credit card, Jacob examines his credit report. Which explains why Jacob might examine his credit report?

A
to determine which company has the best credit card features
B
to determine if he has a history of good credit
C
to determine if he needs a credit card
D
to determine his credit limit
16

Isabella bought a CD player at the store. She will receive the bill at the end of the month. She plans to pay $30 each month until the bill is paid in full. How did Isabella pay for the CD player?

A
cash
B
check
C
credit card
D
debit card
17

Pete is trying to get a loan. He has a credit score of 480. How is Pete’s lender likely to view this credit score?

A
Pete is responsible and will pay the loan back on time.
B
Pete is responsible but will not pay the loan back on time.
C
Pete is irresponsible but will pay the loan back on time.
D
Pete is irresponsible and will not pay the loan back on time.
18

Dahlia is explaining to her sister why a positive credit history is important. Which of the following should Dahlia give as reasons for a positive credit history? Check all that apply.

A
A good credit history portrays irresponsibility.
B
A good credit history results in lower interest rates.
C
A good credit history makes borrowing easier.
D
A good credit history results in higher interest rates.
E
A good credit history may result in denial of a rental application.

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