Are You Ready to Make a Big Purchase?
1 of 10
How many credit cards do you have?
Two to three. This way I can ensure a lower balance on each of the cards and keep my credit utilization rate down.
One. Even if the balance spikes occasionally, I know I can keep it under control by making at least the minimum payment each month and steadily chipping away at the balance.
None! I try to avoid using credit because I'm afraid I'll hurt my score.
2 of 10
Which best describes your approach to paying your credit card bill?
I pay off the entire balance each month.
I make more than the minimum payment each month, and contribute more when I can so that I can pay off the entire balance as quickly as possible.
I pay something each month, but it's usually the minimum. I heard it's a good idea to roll over a balance.
3 of 10
What kinds of purchases make up your credit card balance?
Everyday expenses. I use my credit card on small purchases every day, and I pay off my balance in full.
I only use my credit card occasionally, to tide me over between paychecks, so paying it off is manageable.
I currently have balances for things that I couldn't afford—like vacations and expensive electronics.
4 of 10
How does your credit score impact your life?
I know that having good credit is very important, and my score can affect my ability to be approved for loans, find an apartment, and qualify for low interest rates.
I check it periodically and know that I should aim for a score of above 700, but I'm a bit hazy on why it's important.
Not a whole lot—I don't really pay attention to it.
5 of 10
When you're more "liquid" than usual—say, after you've received your holiday bonus or a tax refund—what do you do with the money?
I invest it. You need to save money in order to make money.
I make lump payments on my debts, such as my credit card bills or loans. It's a great way to catch up or get ahead paying them off.
I buy that new TV I've been eyeing.
6 of 10
Fill in the blank: I plan on paying for this big purchase with ________
A combination of savings and borrowing from a loan or credit card.
My savings. All of it. I can always replenish my emergency funds later.
My credit card. That's what they're for, right?
7 of 10
Planning on making your big purchase with your partner? How is his or her credit?
We checked before applying for our loan, and my partner has solid credit.
I know that my partner struggled with credit years ago, but is working to get back on track.
No idea. And why would that matter?
8 of 10
After making this big purchase, how do you think you will feel?
Excited! I can't wait to start planning for the next milestone in my life.
A bit anxious. It may take some time to figure out how the expenses associated with my new purchase will fit my budget.
Stressed. I will be paying off this purchase for a long time, and I'm not sure I have enough saved up to account for ongoing expenses associated with this purchase.
9 of 10
Congrats, you're the owner of a new car! What are you going to do now?
Budget for new expenses I'll have, including insurance payments and maintenance fees.
Pay down any debts I incurred during the purchase.
Splurge on fancy new accessories!
10 of 10
How does your credit score affect your future?
It shows bank and lending institutions that I'm a responsible borrower, which may help me acquire the things I want down the road.
I know that insurance companies, landlords, and employers can look at my credit report, but I'm not sure how that will affect my life long-term.
It doesn't; I'm perfectly fine living month to month.