Credit Cards and Borrowing

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Benefits of credit cards include: safe and convenient, bonuses are offered, allows you to build a positive credit report, needed for reservations and online shopping.

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all of these

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The maximum amount you may borrow on a credit card is known as: creditworthiness, credit report, credit limit, variable rate of credit

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credit limit

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What is the best way to avoid credit card debt? Choose the best answer: Use several credit cards to avoid putting too much money on one card., Don't spend more money than you have., Only use credit cards to buy expensive items.

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Don't spend more money than you have.

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The cost of borrowing money is referred to as

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Interest

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What is a good practice when it comes to credit cards?

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paying the amount charged in full each month

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There’s no penalty if I pay my credit card balance after the due date.

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False

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Having a high credit score will allow lenders to give you lower interest rates.

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True

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Your credit score is not affected by which of the following: Payment history, Amount owed, Where you live, Length of credit history

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Where you live

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To build a good credit history, you should: open as much credit as quickly as possible, use the maximum credit allowed on all your credit cards, pay on time and as much of your balance as possible, all of these

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pay on time and as much of your balance as possible

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What does APR stand for?

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Annual Percentage Rate