This quiz works best with JavaScript enabled. Home > Finance > Credit > Credit – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Credit Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. All are good signs of credit; except A) Paying at least the minimum required payment. B) Paying late on occasion. C) Never missing a payment. D) Staying within your credit limit. Show Answer Correct Answer: B) Paying late on occasion. 2. The most commonly used credit score in the United States. Fair Isaac Corporation A) FICO. B) FICA. C) BICS. D) None of above. Show Answer Correct Answer: A) FICO. 3. The principle of a loan is: A) The "original" amount of a loan less fees and interest. B) The "original" borrowed amount plus interest. C) The "original" borrowed with amount with fees included. D) The "original" amount of money borrowed. Show Answer Correct Answer: D) The "original" amount of money borrowed. 4. A number assigned to a person that indicates to lenders their capacity to repay a loan. A) Credit score. B) Credit report. C) Credit history. D) Credit bureau. Show Answer Correct Answer: A) Credit score. 5. If Sammy's expenses are greater than his income, what must he do to balance his budget? A) Earn more money. B) Spend less money on expenses. C) Earn more money AND spend less. D) None of the above. Show Answer Correct Answer: C) Earn more money AND spend less. 6. What percent of your credit score is based upon payment history or an individual? A) 30. B) 15. C) 10. D) 35. Show Answer Correct Answer: D) 35. 7. When do you need to show your credit score? A) When you apply for a loan. B) When you apply for a credit card. C) When you apply for a house. D) All of these. Show Answer Correct Answer: D) All of these. 8. When do you need credit? A) When you apply for a loan. B) When you apply for a credit card. C) When you apply for a house. D) All of the above. Show Answer Correct Answer: D) All of the above. 9. An example of a good credit score is ..... A) 100. B) 300. C) 800. D) None of above. Show Answer Correct Answer: C) 800. 10. Advantages of keeping a spending plan. A) Reach financial goals. B) Identify income and expenses. C) There are none. D) (A & B). Show Answer Correct Answer: D) (A & B). 11. What is the numerical range for credit scores from the three major reporting agencies? A) From 1 to 100. B) From 1 to 1000. C) From 500 to 1000. D) From 300 to 850. Show Answer Correct Answer: D) From 300 to 850. 12. The best time to start saving for your retirement is A) When you become eligible for Social Security. B) As soon as possible. C) When you start a family. D) When interest rates are low. Show Answer Correct Answer: B) As soon as possible. 13. The act of taking an asset used as collateral and selling it to pay the debt A) Repossession. B) Delinquent. C) Character. D) Capacity. Show Answer Correct Answer: A) Repossession. 14. What is term for the person who will sign a loan document with you to help you obtain credit? A) Capital. B) Nice Person. C) Cosigner. D) Equitor. Show Answer Correct Answer: C) Cosigner. 15. What makes up the largest part of your credit score? A) Length of credit history. B) Income. C) How well you pay off your bills. D) Types of credit you use. Show Answer Correct Answer: C) How well you pay off your bills. 16. What is the term for money you can use now, but must pay back later? A) Credit. B) Collateral. C) Down payment. D) Deposit. Show Answer Correct Answer: A) Credit. 17. Institution that collects credit information about you and sells it to lenders for use in establishing your credit rating A) FICO. B) Credit bureau. C) FBI. D) Hackers. Show Answer Correct Answer: B) Credit bureau. 18. How can one avoid paying interest on money borrowed on a credit card? A) Pay the amount used in full during the current billing cycle. B) Make the minimum payment on the account statement. C) Pay at least have of the balance showing on the statement. D) Not making a payment at all. Show Answer Correct Answer: A) Pay the amount used in full during the current billing cycle. 19. Which loan type is more common? A) Single Payment. B) Installment. C) No payment. D) Character. Show Answer Correct Answer: B) Installment. 20. What can you usually buy or get easier with a good credit score? A) House. B) Car. C) Lower interest rate on a loan. D) All of the above. Show Answer Correct Answer: D) All of the above. ← PreviousNext →Related QuizzesFinance QuizzesCredit Quiz 1Credit Quiz 3Credit Quiz 4Credit Quiz 5Credit Quiz 6Credit Quiz 7Credit Quiz 8Credit Quiz 9Credit Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books