Test your knowledge

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

Keep studying!

Review your answers below to learn more.

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.

You can get a short-term loan from your checking account through what is called _______.

Choose wisely. There is only one correct answer.

Overdraft protection

A checking account loan

A cash advance

Overdraft protection. Overdraft protection simply means overdrawing your checking account. You will likely be charged a fee for it.

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 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.

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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