Understanding Credit Answers

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1
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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?

A
Lois used a debit card to make the purchase.
B
Lois used a credit card to make the purchase.
C
Lois either used a debit card or used a credit card and paid the balance in full when the bill arrived.
D
Lois either used a debit card or used a credit card and made a single payment.
2
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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.
3

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
4

Yoko is buying a car from a local car dealership. She wants to get the lowest interest rate possible. Which will most likely help her get the lowest interest rate?

A
asking nicely
B
making sure she has a positive credit history
C
explaining that she has many outstanding loans
D
showing her driver’s license
5

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
6

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

A
Kenya used money directly from her bank account to buy the jeans.
B
Kenya borrowed the money to buy the jeans.
C
Kenya did not have enough money in her bank account to buy the jeans.
D
Kenya will pay for the jeans over time.
7

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

A
previous address, current address, bankruptcy, car loan payment history
B
current address, monthly income, car loan payment history, date of birth
C
previous address, current address, schools attended, bankruptcy
D
current address, monthly income, car loan payment history, schools attended
8

Which information is found on a credit report?

A
grade point average
B
list of schools attended
C
names of family members
D
credit account history
9

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.
10

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.

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