Using Credit Quiz

What is the term for a person or business that is borrowing money?

• Lender

• Borrower

• Principal

• Creditor

Who is considered a lender?

• A person or business that is borrowing money

• A person or business that is lending money

• A person or business that is saving money

• A person or business that is investing money

What is an account number?

• The same as your credit card number

• A unique number assigned to your account by the lender

• A number that changes with each new card

• A number found on your monthly statements only

What does your balance represent?

• The total amount of money you owe your lender

• The total amount of money you have saved

• The total amount of money you have spent

• The total amount of money you have earned

What is a billing cycle?

• The time between two payments

• The time between two statements

• The time between two purchases

• The time between two loans

What does the principal refer to?

• The total amount of money borrowed including interest

• The original amount of money borrowed excluding interest

• The total amount of money saved

• The total amount of money spent

What is the minimum payment?

• The largest amount you need to pay each billing cycle

• The smallest amount you need to pay each billing cycle

• The total amount you need to pay each billing cycle

• The average amount you need to pay each billing cycle

What is a late payment fee?

• A fee charged for paying early

• A fee charged for paying on time

• A fee charged for paying late

• A fee charged for not paying at all

What is an annual fee?

• A fee paid monthly to use a credit card

• A fee paid once a year to use a credit card

• A fee paid weekly to use a credit card

• A fee paid daily to use a credit card

What is revolving credit?

• Credit that can be borrowed once and never again

• Credit that can be borrowed, paid off, and borrowed again

• Credit that can only be borrowed twice

• Credit that can be borrowed but not paid off