AnswersOR-Grade 8 US HistoryMaking Spending Decisions

Understanding Credit Answers

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1
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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
2
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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?

t
to determine if the customer is a likeable person
t
to determine the customer’s income
t
to determine the customer’s job title
t
to determine if the customer is likely to pay back the loan
4

Tamera and Rupert each applied for the same credit card through the same company. Tamera has a positive credit history. Rupert has a negative credit history. Which compares their credit limits and likely interest rates?

A
Tamera’s credit limit is most likely higher than Rupert’s, and her interest rate is most likely lower.
B
Tamera’s credit limit is most likely lower than Rupert’s, and her interest rate is most likely higher.
C
Rupert’s credit limit is most likely higher than Tamera’s, and his interest rate is most likely lower.
D
Rupert’s credit limit is most likely lower than Tamera’s, and his interest rate is most likely lower.
5

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.
6

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.
8

Quincy wanted his credit report. Which list could Quincy have obtained?

p
previous address, current address, bankruptcy, car loan payment history
c
current address, monthly income, car loan payment history, date of birth
p
previous address, current address, schools attended, bankruptcy
c
current address, monthly income, car loan payment history, schools attended
9

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
10

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.

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