#1
Which of the following is an example of revolving credit?
Auto loan
Student loan
Credit card
Mortgage loan
#2
Which of the following is NOT a factor that affects a person's credit score?
Payment history
Length of credit history
Ethnicity
Credit mix
#3
What is the minimum age requirement to obtain a credit card in most countries?
16 years old
18 years old
21 years old
25 years old
#4
What does FICO stand for in the context of credit scoring?
Financial Investment and Credit Organization
Fair Isaac Corporation
Federal Insurance Company
Financial Institutions Credit Office
#5
Which of the following is a potential consequence of defaulting on a loan?
Increase in credit score
Lower interest rates
Legal action by the lender
Approval for future loans
#6
What is the purpose of a credit score?
To measure a person's financial stability
To determine eligibility for credit
To assess risk for lenders
All of the above
#7
What does APR stand for in the context of consumer credit?
Annual Percentage Rate
Average Personal Returns
Automatic Payment Reminder
All Purpose Reward
#8
What is the purpose of a grace period on a credit card?
To waive annual fees
To avoid late payment penalties
To offer cashback rewards
To increase credit limit
#9
Which of the following is an advantage of leasing a car instead of buying one?
Ownership at the end of the term
Lower monthly payments
No mileage restrictions
Ability to customize the vehicle
#10
What is the term for a type of credit that requires collateral, such as a house or car?
Unsecured credit
Revolving credit
Secured credit
Installment credit
#11
What does the Debt-to-Income (DTI) ratio measure?
The amount of debt owed compared to income
The credit utilization ratio
The frequency of loan payments
The number of credit accounts
#12
What is the purpose of a co-signer on a loan or credit application?
To provide collateral
To share responsibility for the debt
To transfer ownership of assets
To increase the interest rate
#13
Which of the following actions can help improve a credit score?
Closing old credit accounts
Applying for multiple new credit cards at once
Paying bills on time
Maxing out credit card limits
#14
Which of the following factors is NOT considered when calculating credit scores?
Income level
Amount of debt owed
Length of credit history
New credit inquiries
#15
What is the term for a credit report request made by an individual or entity checking their own credit report?
Soft inquiry
Hard inquiry
Credit inquiry
Credit pull