Credit Pre-Assessment
Part I:
Directions: Without using the internet, answer the following questions in class to the best of your ability. Use
complete sentences for your responses. Then later this afternoon, ask an adult (a parent, guardian or adult sibling)
the same questions and record their responses.
Question
Your Answer
Adult Answer
What do you see as the advantage of credit in
general?
You can enjoy using something
you need as you pay for it.
If youdont have enough money in your
checking then you can put it on credit
What do you see as the advantage of credit
cards?
Most cards come with extensive
credit card perks
Most cards come with extensive
credit card perks
What do you see as the disadvantage of credit
in general?
Credit almost always costs
money
You can get carried away with spendings
What do you see as the disadvantage of credit
cards?
High-Interest Rates. If you carry a balance
on your card, the interest rate can be as
high as 30% or more.
Potential for Overspending. It's easy to get
caught up in the moment when using a
credit card instead of cash or a debit card
At what age do you believe most people get a
credit card?
I think 22
21
What age do you feel is appropriate to have a
credit card? Why?
18, so you can start building credit
at an early age and developing
good money habits.
21 so your more trust worthy
What types of things do people apply for credit
for?
Three things a credit card application will need
are your full name, your Social Security number
or Individual Taxpayer Identification
Three things a credit card application will need
are your full name, your Social Security number
or Individual Taxpayer Identification
Why do you think many Americans get into
trouble financially with credit cards?
The most obvious reason why people get into
debt is also the simplest: Credit cards make it
possible for people to outspend their earnings.
The most obvious reason why people get into
debt is also the simplest: Credit cards make it
possible for people to outspend their earnings.
What are the consequences of the abuse of
credit and credit cards?
If convicted of Credit Card Abuse, If convicted of Credit Card Abuse,
a person can face serious jail time a person can face serious jail time
and monetary fines
and monetary fines
What is a credit score? How is it determined?
How far behind you are on a bill
payment, the number of accounts
that show late payments and
whether you've brought the
accounts current
How far behind you are on a bill
payment, the number of accounts
that show late payments and
whether you've brought the
accounts current
What would be your best advice to someone
just starting to use credit?
Use up very little of your credit limi
Use up very little of your credit limi
What is interest? How does interest impact a
person’s credit card?
the card company will multiply it
each day by a daily interest rate
and add that to what you owe.
the card company will multiply it
each day by a daily interest rate
and add that to what you owe.
Part II:
Directions: Answer the following statements with a yes or a no. Then explain your opinion in the space provided with a complete sentence.
Statement
Your Answer (Yes/No)
Credit cards should be restricted to needed
items and not luxury items.
no
People who use credit cards tend to overspend.
no
Credit cards are generally a safe substitute for
having to carry cash.
yes
Credit card interest rates are too high.
no
Credit cards are too easy for people to obtain.
no
Credit cards can help someone take advantage
of a good sale for something they want.
no
There should be a limit as to the number of
credit cards a person can have.
yes
Explain your opinion
Credit cards make it more difficult for people
to know how much money they have.
no
It is easy to pay a credit card off.
yes
Everyone can qualify for credit/credit cards.
yes