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1.
Which is typically easier to get: a secured credit card or an unsecured credit card?
Secured credit card. It is easier to get because it is backed by a source of money that can be taken if you default on the card. For this reason, those who are trying to get credit for the first time consider these cards.
2.
If you have accounts with a financial institution such as a bank or credit union, it can be advantageous to apply for your first credit card there.
True. The institution will have a sense of how you handle money.
3.
If you want to establish credit but haven't yet, potential lenders can make a judgment about your creditworthiness based on other factors.
True. Lenders can look at your history of paying bills, your employment history, and your housing history.
4.
What is the main reason behind using a credit card to buy things that you already have cash for?
It helps build a good credit record. Having the money already on hand makes it easy to pay your bill, and in the future, you will benefit from the enhanced credit history.
5.
A personal loan from a bank or credit union works the same way as a credit card.
False. Personal loans do not work the same way as credit cards. They have set limits and a schedule of repayment.