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Personal Finance Courses:
Predatory Lending
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.
1.
How good does your credit need to be in order for you to take out a payday loan?
Choose wisely. There is only one correct answer.
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.
2.
As far as loans go, payday loans are generally small.
Choose wisely. There is only one correct answer.
True
False
True. Payday loans are usually $500 or less, making them small.
3.
If you put up a guitar at a pawnshop in return for a loan, what usually happens if you can't pay the loan back?
Choose wisely. There is only one correct answer.
The pawnshop can keep the guitar.
Nothing
You get an extra week to pay off the loan.
None of the above
The pawnshop can keep the guitar. This is the general rule for how these loans work.
4.
What is a typical fee on a payday loan?
Choose wisely. There is only one correct answer.
15%
50%
100%
5%
15%. Fee rates range from 15-20% of the amount borrowed.
5.
What are some things that a payday lender could do if you did not pay back a payday loan you took out?
Choose wisely. There is only one correct answer.
Turn your loan over to a debt collector
Sue you
Repossess your property that you put up as collateral
All of the above
All of the above. All of these are possibilities.
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DONE