Understanding Credit

Question 1

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?

Revolt · Accepted Answer

B: Fido’s decision is sensible because the cost of the car loan should be less if his credit history improves.

Question 2

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?

Revolt · Accepted Answer

L: Lois used a credit card to make the purchase.

Question 3

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

Revolt · Accepted Answer

C: Simon will receive the bill later.

Question 4

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

Revolt · Accepted Answer

B: to receive a bill at a later date; C: to be able to pay for it over time; E: to pay interest if he does not pay in full by a certain date

Question 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?

Revolt · Accepted Answer

D: Pete is irresponsible and will not pay the loan back on time.

Question 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?

Revolt · Accepted Answer

A: Ida

Question 7

Which information is found on a credit report?

Revolt · Accepted Answer

c: credit account history

Question 8

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

Revolt · Accepted Answer

t: to determine if he has a history of good credit

Question 9

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

Revolt · Accepted Answer

K: Kenya used money directly from her bank account to buy the jeans.

Question 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.

Revolt · Accepted Answer

B: an easier time getting a car loan; C: an easier time renting an apartment

Understanding Credit Answers

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