Credit Cards

Which type of card is borrowing money that you have to pay back later?

• Credit card

• Debit card

What is an annual fee? 

• The act of transferring money 
• A fee charged by a card issuer for being a card holder. 
• The days between the last statement and the current statement. 
• A fee charged to a cardholder's account once a payment is late. 

The worst way to work with a credit card is to ___________________________.

• use less than 50% of the credit limit

• pay more than the minimum payment (if you can)

• pay off the balance in full (if you can)

• max out the credit limit and pay only the minimum payment

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

• American Express
• Chase Sapphire
• Neither
• All of the above

How can you avoid paying interest fees on your credit card?

• Only use it for groceries
• pay off the full balance, on time, each month
• you cannot avoid interest fees
• only use Discover

It is wise to compare credit card offers before choosing one

• True
• False

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

• True

• False

The least amount that must be paid on a credit card each month is

• Late Fee
• Credit Limit
• Payment amount
• Minimum Payment

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

• Do not pay anything
• Pay the minimum payment after its due date
• Pay the minimum balance every month
•  Pay the balance in full every month

Which type of card is directly linked to your bank account?

• Credit card

• Debit card