AnswersPersonal Finance - EL3403Financial Responsibility

Understanding Credit Answers

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1
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Martin used his credit card to buy a new bike. Which statement is true?

A
Martin borrowed money to buy the bike.
B
Martin paid cash at the store.
C
Martin used money from his checking account.
D
Martin saved money over time.
2
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Check all that you included in your response.

A
A credit report is a detailed written document about a person’s credit history.
B
A credit report contains personal information and any information that can be found in public records.
C
A credit report contains information from collection agencies and information on credit cards or loans.
D
A credit report lists anyone who has requested a copy of the credit report.
6

Which are considered good credit practices? Check all that apply.

A
Pay less than the minimum amount due.
B
Make payments on or before the due date.
C
Pay off the full amount with the first monthly statement.
D
Have a plan of how you will repay the money.
E
Choose the credit card with the highest interest rate.
7

Explain what a credit report is and list five kinds of information found on a credit report.

Answer:

A credit report is a detailed written document that shows a person’s credit history. It includes personal information, information from public records, details about credit cards and loans, information from collection agencies, and a list of individuals or companies that have requested a copy of the credit report.

8

Which should Mark do to increase his credit score?

A
Pay off his personal loan for his entertainment system.
B
Skip a car payment.
C
Apply for as many credit cards as he can.
D
Make lower monthly payments on his current credit card bill.
9

Which would decrease your credit score? Check all that apply.

A
a decrease in income
B
an increase in debt amount
C
a missed payment
D
a late payment
E
a long credit history
11

Question text not available

Answers:
Selection 1:increase
Selection 2:decrease
Selection 3:decrease
Selection 4:no effect
Selection 5:decrease

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