Credit 101

21 Questions | Total Attempts: 1059

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Credit Quizzes & Trivia

Quiz on credit fundamentals. Topics covered include building a credit history, advantage and disadvantages of credit, the three c's of credit and the 20/10 rules.


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Questions and Answers
  • 1. 
  • 2. 
    A common advantage of using credit is:
    • A. 

      Less impulse buying

    • B. 

      Lower cost for items purchasaed

    • C. 

      Ability to obtain new items right away

    • D. 

      Lower chance of overspending

  • 3. 
    A person's regular income is referred to as:
    • A. 

      Character

    • B. 

      Capital

    • C. 

      Collateral

    • D. 

      Capacity

  • 4. 
    To build a credit history, a person could:
    • A. 

      Establish a steady employment record

    • B. 

      File his or her federal income taxes on time

    • C. 

      Use an ATM several times a month

    • D. 

      Request to view his or her credit report once a year

  • 5. 
    Utility companies and medical service organizations commonly offer:
    • A. 

      Revolving credit

    • B. 

      Single-payment credit

    • C. 

      Installment credit

    • D. 

      Retail credit

  • 6. 
    Using the 20/10 rule, a person earning $1,500 a month should not have monthly credit payments that exceed:
    • A. 

      $150

    • B. 

      $100

    • C. 

      $300

    • D. 

      $500

  • 7. 
    It is legal for a creditor to deny an applicant based on marital status or age.
    • A. 

      True

    • B. 

      False

  • 8. 
    If you are refused credit because of a credit report, upon request from you, the lender must give you the name and address of the credit bureau that issued the report.
    • A. 

      True

    • B. 

      False

  • 9. 
    Your credit report is available to anyone, regardless of the reason.
    • A. 

      True

    • B. 

      False

  • 10. 
    To be within a safe debt load, your total credit (excluding rent) should not exceed 20% of your net pay.
    • A. 

      True

    • B. 

      False

  • 11. 
    A disadvantage of using credit cards is impulse buying.
    • A. 

      True

    • B. 

      False

  • 12. 
    Capital refers to a person's assets.
    • A. 

      True

    • B. 

      False

  • 13. 
    Installment credit usually allows a person to make additional purchases on account.
    • A. 

      True

    • B. 

      False

  • 14. 
    Using the 20/10 rule, a person making $40,000 per year after taxes should have no more than $8,000 of outstanding debt.
    • A. 

      True

    • B. 

      False

  • 15. 
    Generally, how long can a consumer reporting agency report unfavorable information?
  • 16. 
    What type of credit is: a car loan
    • A. 

      Single payment credit

    • B. 

      Installment credit

    • C. 

      Revolving credit

  • 17. 
    What type of credit is: monthly electric bill
    • A. 

      Single payment credit

    • B. 

      Installment credit

    • C. 

      Revolving credit

  • 18. 
    What type of credit is: using a major credit card to buy a stereo and then paying it off over several months.
    • A. 

      Single payment credit

    • B. 

      Installment credit

    • C. 

      Revolving credit

  • 19. 
    Which of the three c's is being measured by the following question:Have you used credit before?
    • A. 

      Character

    • B. 

      Capital

    • C. 

      Capacity

  • 20. 
    Which of the three c's is being measured by the following question:How much money do you make a year?
    • A. 

      Character

    • B. 

      Capital

    • C. 

      Capacity

  • 21. 
    Which of the three c's is being measured by the following question:Do you own any property?
    • A. 

      Character

    • B. 

      Capital

    • C. 

      Capacity