Course Catalog > Personal Finance > Courses
Personal Finance Courses: Predatory Lending

Test your knowledge

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

0%
Keep studying!
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.
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.
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. 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.
3.
A payday loan is designed to _______.
Choose wisely. There is only one correct answer.
Tide you over until your next paycheck. A payday loan is set up to pay short-term bills and to be repaid with your next paycheck.
4.
If you are behind on a non-payday loan, why should you talk with the creditors about it?
Choose wisely. There is only one correct answer.
They would rather work with you than have to sell your loan to a debt collector. If they sell your loan to a debt collector, they will get very little for it. They WANT to work with you rather than see that happen.
5.
Predatory lending can be identified by _______.
Choose wisely. There is only one correct answer.
Its high costs. Predatory lending involves a business charging higher-than-normal costs of various kinds.