Test your knowledge

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If you have a short-term financial emergency, what is a low-cost way to obtain a loan?

Choose wisely. There is only one correct answer.

Payday loan

Emergency credit union loan

Credit card

Emergency credit union loan. Many credit unions and banks offer relatively low-interest short-term loans that can help tide you over a short-term financial emergency.

How good does your credit need to be in order for you to take out a payday loan?

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Excellent

Very good

Average

It doesn't need to be good

It doesn't need to be good. You don't need good credit in order to get a payday loan. Many borrowers do not have good credit.

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

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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.

What do borrowers use payday loans for?

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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.

If you roll over a payday loan three times, you will be charged a new fee each time.

Choose wisely. There is only one correct answer.

True

False

True. You will be charged a new fee for each rollover.

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