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Basics Beginner: Establishing Credit for the First Time

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1.
Because interest rates on department store credit cards tend to be high, first-timers would do well to avoid them.
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False. They are worth considering for those who are looking to get their first card.
2.
A secured credit card is one that is backed by some asset.
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True. The asset protects the lender if you default on your payments.
3.
If you want to establish credit but haven't yet, potential lenders can make a judgment about your creditworthiness based on other factors.
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True. Lenders can look at your history of paying bills, your employment history, and your housing history.
4.
The largest part of your credit history is _______.
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Payment history. This part accounts for 35% of your credit history.
5.
Personal loans from banks or credit unions must be paid back _______.
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On a schedule. Personal loans, like many loans, are paid back on a set schedule.