Test your knowledge

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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.
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. 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. 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. 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. This part accounts for 35% of your credit history.