Test your knowledge

Choose wisely. There is only one correct answer to each question.

Keep studying!

Review your answers below to learn more.

All credit cards are a form of predatory lending.

Choose wisely. There is only one correct answer.

True

False

False. Some credit cards have very high fees and other predatory features, but many of them do not.

What do borrowers use payday loans for?

Choose wisely. There is only one correct answer.

Medical emergencies

Regular bills

As an alternative to other loans

All of the above

All of the above. People take out payday loans for many different reasons.

You can get a short-term loan from your checking account through what is called _______.

Choose wisely. There is only one correct answer.

Overdraft protection

A checking account loan

A cash advance

Overdraft protection. Overdraft protection simply means overdrawing your checking account. You will likely be charged a fee for it.

As a general rule, which of the following will charge the LEAST amount of interest if you take out a loan?

Choose wisely. There is only one correct answer.

A payday lender

A credit card

A credit card cash advance

A loan from a bank or credit union

A loan from a bank or credit union. As a rule, these loans have the lowest interest rates and charge the least amount of interest.

To qualify for a payday loan, what must your income be?

Choose wisely. There is only one correct answer.

$100 per week

$300 per week

There is no minimum.

There is no minimum. You just need to earn sufficient money to cover the loan.

© Copyright 2024 Precision Information, publisher of the Financial Fitness Group family of products. The trade name Financial Fitness Group and the trademarks Financial Fitness CENTER™, Financial Fitness CHECKUP™ and Financial Fitness ACADEMY™ are exclusive marks of Precision Information, LLC. All rights reserved.