Credit Card Quiz

Which of the following is true of charge cards?

• They do not have a credit limit

• They are revolving balance cards

• They have a high finance charge when a balance is carried from month to month

• They can only be used at specific locations

Which is the most common type of credit card?

• Secured

• Prepaid

• Standard

• Charge

Paying only the minimum monthly payment, not the entire balance, by the payment due date for a credit card will:

• Trigger the finance charge, meaning that your remaining balance will begin accumulating interest

• Eliminate the grace period for the next month

• Satisfy your payment obligation to the credit card company

• All of the above

The credit limit on a secured credit card is determined by:

• A request from you as the cardholder

• The amount of your prepaid deposit

• Your credit score

• The issuer of the credit card

Which credit card fee will hurt your credit score?

• Annual fee

• Late payment fee

• A high APR (finance charge)

• Returned check fee

You have a credit card with an 11.9% APR finance charge. You accumulate $900 in charges on this card, $600 of which were made before the billing date. How can you avoid paying a finance charge on this account?

• Pay $600 by the payment due date

• Pay the minimum monthly payment before the payment due date

• Stop charging on the card until you are able to pay the balance off in full

• You cannot avoid a finance charge unless you pay the entire $900 balance by the due date

If your balance is $3,500 on a credit card with a 10% APR finance charge and a 2% minimum payment, what would the typical minimum monthly payment be?

• $350

• $29.17

• $70

• $58.33

You transfer $4,000 onto a credit card with a 12.9% APR finance charge and a 3% balance transfer fee. What is the total balance due shown on your first month’s statement after the transfer?

• $120

• $516

• $4,636

• $4,120

What kind of rewards program would be considered the most flexible and useful?

• Airline rewards, since airline ticket prices fluctuate

• A points program for your favorite clothing store

• ExxonMobil gas rewards, since gas prices are rising so far so fast

• Cash back: you can use cash anywhere for anything

What should you pay particular attention to when choosing a new credit card?

• Your spending habits and how you intend to use the card

• The finance charge APR and other interest rates for other services

• Fees, which are disclosed on the application and/or buried in the fine print

• All of the above