Test your knowledge

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

Keep studying!

Review your answers below to learn more.

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.

Paying off payday loans on time, every time, is a great way to build up your credit score.

Choose wisely. There is only one correct answer.

True

False

False. Payday lenders do not report your borrowing activity to the three big credit bureaus, so the activity will not influence your credit score.

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.

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.

If you don't pay back your payday loan, the lender could take you to court and sue you for it.

Choose wisely. There is only one correct answer.

True

False

True. Legally, the lender can do that if it wants. Of course, all lenders would rather not have to go that route if they can avoid it.

© 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.