EVERFI Module 5 Managing Credit and Debt Answers QuestionAnswer Using a loan could help with the purchase of which of the following?A house When are loans a good option to use?When paying for higher education What should you NOT use a loan to purchase?Airline tickets to your dream vacation Which item is important to consider when selecting a credit card?Both APR and fees Which of these items is NOT important to consider when selecting a credit card?The look of the credit card Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when _.Choosing a credit card What is NOT a benefit of having a good credit score? You’ll get accepted to better education institutions.What is a benefit of having a good credit score? When you need a loan, you’ll have more loan offers to pick from.Having a great credit score will make it easier for you to get into a better educational institution.
FALSE Secured loans are less costly than unsecured loans because _.All of these are true.The cost of a secured loan is typically lower than the cost of an unsecured loan because _.it requires collateral. 1 / 2
QuestionAnswer Which of the following is NOT a feature that makes a secured loan less costly than an unsecured loan?A high interest rate To maintain a good credit score you must __.manage your debt wisely.What will happen to your credit score if you do not manage your debt wisely?Your credit score will go down Not managing your debt wisely can result in __.A decrease in your credit score Recommended methods to protect yourself from identity theft and fraud include_______.Placing a credit freeze with the credit bureaus.Which of the following will help you protect yourself from identity theft and fraud?All of the above.Which of the following is NOT a recommended method to protect you from identity theft?Expensive specialty locking or monitoring service.Paying only the minimum balance on your credit card can lead to… paying more interest.All of the following are benefits to paying the full balance on
your credit card each month EXCEPT:
Your credit score can decrease.Benefits to paying the full balance of your credit card each
month include:
Not having late fees When looking for pre-approval on a car loan you should…compare pre-approval offers and select the one that is best for you.When looking for pre-approval on a car loan you should NOT…get a loan from the car dealer directly to keep things simple.
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