Title: QUIZ: Credit Reports Module
Course: Kelly O's Course > Section: Credit Reports (It's Your Paycheck, Lesson 6) Module

Q: Which of the following is a disadvantage to using credit?
- Not having to carry cash
- Being able to pay for emergencies
- Having goods and services while paying for them later
- Can cost more than paying cash
A: Can cost more than paying cash
If right: That is correct.
If wrong: This is incorrect. Using credit to buy goods and services often costs more when fees and interest charges are considered. Paying more is a disadvantage.

Q: Which of the following is not recorded on your credit report?
- Your income
- The name of your employer
- Late payment history
- A history of credit accounts with names of creditors
A: Your income
If right: That is correct.
If wrong: This is incorrect. Your income does not appear on your credit report.

Q: True or False: The three credit bureaus are Equifax, CreditCo, and Experian.
- True
- False
A: False
If right: That is correct.
If wrong: This is incorrect. The three credit-reporting bureaus are Equifax, Experian, and TransUnion.

Q: Which of the following can damage your credit history?
- Open a bank account.
- Purchase a cell phone contract and pay it on time and in full every month.
- Make car payments and car insurance payments on time.
- Open many credit card accounts.
A: Open many credit card accounts.
If right: That is correct.
If wrong: This is incorrect. Opening many credit card accounts can damage your credit history. Opening a bank account and paying bills on time is a good way to establish a good credit history.

Q: A high credit score can result in
- higher interest charges.
- difficulty obtaining credit in the future.
- difficulty renting an apartment.
- lower interest rates.
A: lower interest rates.
If right: That is correct.
If wrong: That is incorrect. A high credit score can result in lower interest rates for credit. Poor credit scores can result in higher interest rates, difficulty obtaining credit, and even difficulty renting an apartment.

Q: What is credit?
- Granting or lending something of value in exchange for future repayment
- The amount you earn for completing a task
- The recognition you receive during the previous pay period
- A person, financial institution, or other business that lends money
A: Granting or lending something of value in exchange for future repayment
If right: That is correct.
If wrong: That is incorrect. Credit is when you grant or lend something of value in exchange for future repayment.

Q: What is interest?
- The original amount of money borrowed
- The price of using someone else’s money
- The amount of your monthly payment on a loan
- The value of the item you are purchasing with a loan
A: The price of using someone else’s money
If right: That is correct.
If wrong: That is incorrect. Interest is the price of using someone else’s money.