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Being in debt does not hurt your credit score as long as you pay your bills on time.

Your credit score is determined by the following six factors;

1. your payment history
2. if you've ever declared bankruptcy
3. how much money you owe
4. how long you've had credit
5. the type of credit you use
6. if you're trying to get more credit

In question #2 above, the first 3 factors have the greatest impact on your credit score

The better your credit score is, the more likely you are to get a favourable interest rate on a loan

Negative information that may affect your credit score can stay in your credit report for up to __ years

With credit cards, you must pay off your charges each month. If you don't, you'll pay interest on the full amount you owe (not just the balance outstanding from the prior month)

If you take out a cash advance from your credit card...

Paying off debt has no impact on building wealth

It is smarter to incur debt for things that decline in value (rather than increase in value)

When deciding on whether to pay down debt or invest, consider

Borrowing money to buy stocks in large, stable companies involves some degree of risk

It's always smart to take out the maximum amount of mortgage that the bank has approved you for

The longer you take to pay off your mortgage, the more interest you will pay

The longer the amortization period of your mortgage is, the higher your mortgage payments will be

Paying down your mortgage biweekly rather than monthly can save you a large amount of interest over the life of your mortgage

If your credit score is good, consolidating multiple debts can reduce your number of payments and interest costs

You have $1000 balance on your credit card with an interest rate of 20%/yr. If you pay $50/month, your balance will be repaid in;

In Q#17 above, the total amount of interest you will pay is;

Credit & Debt Quiz

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