Credit Card Myths Quiz

What is a common misconception about credit card points and travel?

• They are only valid for a year.

• They cannot be used for hotels.

• They can only be used for flights.

• They cover all travel expenses.

What should you consider when using credit card points for travel?

• The expiration date of points.

• All travel-related expenses.

• Only the cost of flights.

• The number of points required for a hotel stay.

How can you avoid paying interest on your credit card?

• By using the card only for emergencies.

• By paying the full statement balance on time.

• By making only the minimum payment.

• By carrying a balance each month.

What is a common myth about carrying a credit card balance?

• It helps build credit history.

• It increases your credit limit.

• It improves your credit score.

• It reduces interest rates.

What is a benefit of keeping a no-annual-fee credit card open?

• It increases your credit limit automatically.

• It helps improve your age of credit.

• It reduces your interest rate.

• It offers better rewards.

What happens to your credit score if you close a credit card in good standing?

• It remains unchanged.

• It immediately drops significantly.

• It may slightly decrease.

• It may slightly increase.

When are late payments reported to credit bureaus?

• Immediately after the due date.

• After 60 days past the due date.

• After 30 days past the due date.

• After 15 days past the due date.

What is a potential positive effect of applying for a new credit card?

• It can decrease your overall credit utilization.

• It guarantees a lower interest rate.

• It always increases your credit score.

• It eliminates the need for other credit cards.

What is the impact of a hard inquiry on your credit score?

• It permanently raises your score.

• It has no impact on your score.

• It temporarily lowers your score.

• It permanently lowers your score.

What is a behavioral argument against using credit cards?

• They always lead to debt.

• They are difficult to manage.

• They encourage overspending.

• They offer no rewards.