H&R BLOCK CHALLENGE TEST
QUESTIONS AND ANSWERS 100% PASS
interest rate - ✔✔the amount you pay or earn for borrowing or loaning money
compound interest - ✔✔interest on interest, basically interest plus time equals interest
on your interest which equals increasing amounts of money
NSF fee - ✔✔charged by the bank because you do not have enough money to cover the
check/charge
returned check fee - ✔✔charged by the person/company you wrote the check/made
the debit card charge because you did not have sufficient funds to cover the
check/charge
overdraft protection - ✔✔feature you can get on a bank checking count that links your
checking account to your credit card/savings account. if you have check/charge
bounce, the bank will charge you a small fee and use your credit card/savings account
to cover the check/charge
credit utilization - ✔✔the percentage of your credit you are using
Katelyn Whitman, All Rights Reserved © 2025 1
, credit utilization percent - ✔✔the total amount you owe divided by the total amount of
your credit
which two factors determine 70% of your credit rating? - ✔✔credit card utilization %
and your payment history
what is a credit report? - ✔✔how much you owe and how much credit you have. 7 year
history of your payments and any loans you have as well as any unpaid taxes you have
been sued for (tax lien) and now have your wages taken right out of your check which
is bankruptcy
who is responsible for checking the accuracy of your credit report? - ✔✔you
how long does negative information remain on your credit record? - ✔✔7 years
what sort of jobs will possibly not hire you if you have a poor credit rating? why? -
✔✔financial industry because they fear you will steal or commit fraud. government and
law enforcement because they fear you will sell secrets and take bribes
how does your credit score affect your costs and interest rate for borrowing? - ✔✔just
like with scales, the higher your credit the lower your costs, the lower your credit, the
higher your costs. they work together in tandem.
what is the best way to build your credit? - ✔✔get a credit card at 18, charge 19%-30%
of your credit limit per month, pay it all off every month on time.
Katelyn Whitman, All Rights Reserved © 2025 2
QUESTIONS AND ANSWERS 100% PASS
interest rate - ✔✔the amount you pay or earn for borrowing or loaning money
compound interest - ✔✔interest on interest, basically interest plus time equals interest
on your interest which equals increasing amounts of money
NSF fee - ✔✔charged by the bank because you do not have enough money to cover the
check/charge
returned check fee - ✔✔charged by the person/company you wrote the check/made
the debit card charge because you did not have sufficient funds to cover the
check/charge
overdraft protection - ✔✔feature you can get on a bank checking count that links your
checking account to your credit card/savings account. if you have check/charge
bounce, the bank will charge you a small fee and use your credit card/savings account
to cover the check/charge
credit utilization - ✔✔the percentage of your credit you are using
Katelyn Whitman, All Rights Reserved © 2025 1
, credit utilization percent - ✔✔the total amount you owe divided by the total amount of
your credit
which two factors determine 70% of your credit rating? - ✔✔credit card utilization %
and your payment history
what is a credit report? - ✔✔how much you owe and how much credit you have. 7 year
history of your payments and any loans you have as well as any unpaid taxes you have
been sued for (tax lien) and now have your wages taken right out of your check which
is bankruptcy
who is responsible for checking the accuracy of your credit report? - ✔✔you
how long does negative information remain on your credit record? - ✔✔7 years
what sort of jobs will possibly not hire you if you have a poor credit rating? why? -
✔✔financial industry because they fear you will steal or commit fraud. government and
law enforcement because they fear you will sell secrets and take bribes
how does your credit score affect your costs and interest rate for borrowing? - ✔✔just
like with scales, the higher your credit the lower your costs, the lower your credit, the
higher your costs. they work together in tandem.
what is the best way to build your credit? - ✔✔get a credit card at 18, charge 19%-30%
of your credit limit per month, pay it all off every month on time.
Katelyn Whitman, All Rights Reserved © 2025 2
