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Basics Beginner:
Establishing Credit for the First Time
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Choose wisely. There is only one correct answer to each question.
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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.
Choose wisely. There is only one correct answer.
True
False
False. They are worth considering for those who are looking to get their first card.
2.
Personal loans from banks or credit unions must be paid back _______.
Choose wisely. There is only one correct answer.
On a schedule
At your convenience
In one lump sum on a date in the near future
On a schedule. Personal loans, like many loans, are paid back on a set schedule.
3.
Why might potential lenders be interested in knowing how many times you have changed your address?
Choose wisely. There is only one correct answer.
If you move frequently, that may indicate instability to them
They need to know this for marketing purposes
Frequent movers qualify for special deals
They wouldn't be interested in how many times you have moved, actually
If you move frequently, that may indicate instability to them. Even if you are not financially unstable, lenders may still see it that way.
4.
A secured credit card is one that is backed by some asset.
Choose wisely. There is only one correct answer.
True
False
True. The asset protects the lender if you default on your payments.
5.
The largest part of your credit history is _______.
Choose wisely. There is only one correct answer.
Payment history
Amount owed
Length of your credit history
None of the above
Payment history. This part accounts for 35% of your credit history.
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DONE