Credit Pre-Test

Front

What is the least amount that must be paid on a credit card each month?

Back

Minimum Payment

Front

How can a cardholder avoid paying interest on a credit card?

Back

Pay the balance in full every month

Front

The credit company can charge interest if the credit card bill is not paid in full by the due date.

Back

True

Front

It is best to pay more than the minimum due on your credit card.

Back

True

Front

If you have a high credit score, you will receive a high interest rate.

Back

False

Front

A credit report shows a borrower's history of managing and repaying debt.

Back

True

Front

You have a choice between two credit cards: American Express (8.99%) or Chase Sapphire (12.99%.) Which card offers the better rate?

Back

American Express

Front

You charge $500 on each of your two credit cards. American Express has an interest rate of 15.99%, and Chase Sapphire has an interest rate of 20.99%. If you only make the minimum payment of $25 to each credit card company, which card will you pay off first?

Back

American Express

Front

You charge $500 on each of your two credit cards. American Express has an interest rate of 15.99%, and Chase Sapphire has an interest rate of 20.99%. If you only make the minimum payment of $25 to each credit card company, which card will you have paid more in interest?

Back

Chase Sapphire

Front

What is the impact of paying only the minimum payment on a credit card balance?

Back

It increases the total interest paid over time.