Test your knowledge

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

Keep studying!

Review your answers below to learn more.

How long do most payday loans last?

Choose wisely. There is only one correct answer.

A year

A month

Two months

Two weeks

Two weeks. Most payday loans last about the length of a pay period, which is two weeks.

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.

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.

If you take out $1000 from a payday lender, a credit card, and a credit card cash advance, which will charge the most interest?

Choose wisely. There is only one correct answer.

The payday lender

The credit card

The credit card cash advance

The payday lender. By far, the payday lender will charge the most interest. The dollar amount difference between it and the credit cards will be immense. It should be noted that there are also options that are even lower in interest than the credit cards.

Which of the following are you forbidden to spend payday loan money on?

Choose wisely. There is only one correct answer.

Rent

Other loans

Car repairs

You are not forbidden to spend payday loan money on anything.

You are not forbidden to spend payday loan money on anything. There are no restrictions on what you can spend payday loan money on.

© 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.