Test your knowledge

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

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Review your answers below to learn more.

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.

How might a payday loan affect your credit report?

Choose wisely. There is only one correct answer.

If you don't pay the loan back, it could get turned over to a debt collector.

You could get sued if you don't pay the loan back.

Small credit reporting agencies might put your payday loan on a credit report.

All of the above

All of the above. The big three credit reporting agencies don't put payday loans on your report, but there are other ways that the loan activity could show up on your report.

When you take out a payday loan, how long is the grace period for paying it back?

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Two weeks

One month

Two months

There is no grace period.

There is no grace period. Payday loans do not offer grace periods; you must pay them back on your payday or you will be charged late fees.

Which of these lenders requires little or no credit check when loaning money to a borrower?

Choose wisely. There is only one correct answer.

Payday lender

Bank

P2P lender

Payday lender. Payday loans are fast and usually don't require a credit check.

If you put up your car as collateral for a car title loan, what happens to your car if you pay the loan back?

Choose wisely. There is only one correct answer.

The lender can still keep the car

You retain ownership of your car

Nothing

None of the above

You retain ownership of your car. As long as you pay the loan back, you legally must get your car back.

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