Financial Literacy: Credit/Debit Cards and Credit Scores

Financial Literacy:

Credit/Debit

and

Credit Scores

Multiple Choice

True or False: Credit cards offer incentives, perks, and rewards for using the card.

• True

• False

Multiple Choice

Money is automatically taken out of a checking or savings account with this card.

• Credit

• Debit

• Prepaid Card

Multiple Choice

If someone uses your debit or credit card to steal your money, you are protected by federal laws.

• True

• False

Multiple Choice

Which card has no approval process and anyone can use it?

• Credit

• Debit

• Prepaid

Multiple Choice

This card may cause unnecessary debt.

• Credit

• Debit

• Prepaid

Multiple Choice

Credit, Debit, and Pre-paid Debit all have their pros and cons.  One thing they all have in common is you should: 

• • Use all of them as much as possible to build credit.

• • Use them responsibly to be sure to build and maintain good credit. 

Multiple Choice

How long is the billing cycle? 

• 30 days

• Varies by the card issuer

• 28 days

Multiple Choice

What is the grace period? 

• The time between the first day of the month and the last day of the month. 

• The time between the end of the billing cycle and the due date.

• The time between the time you make payment and the date it processes to your account. 

Multiple Choice

What can be a perk of a credit card? 

• Earning rewards

• Being able to spend as much money as I want each month. 

• Earning interest

Multiple Select

What are TWO consequences of making a late payment on your credit card? 

• Increasing your credit score

• • Increasing your interest rate

• • Decreasing your credit score

• Lowering your interest rate

Credit Scores/Credit Reports

Multiple Choice

Which of the following would use your credit score to determine how likely you are to pay your loan or rent on-time?

• Bank

• Landlord

• Credit Union

• All of the above

Multiple Choice

True or False: A score above 720 is considered good/prime.

• True

• False

Multiple Choice

True or False: As long as you make your monthly payments on-time, using the maximum available credit will not affect your credit score.

• True

• False

Multiple Choice

True or False: Credit history is the length of time you have been using credit.

• True

• False

Credit Reports are like report cards

They provide you a grade on how well you use credit.

Multiple Choice

Should you open lots of credit cards and take out loans at the same time? 

• Yes, you need to build your credit. 

• No, it looks risky to lenders and banks. 

Multiple Choice

True or False: Making payments on-time helps your credit score.

• True

• False

Multiple Choice

Is it a good idea to spend the maximum limit on your credit cards? 

• Yes, as long as you make your payments on time. 

• No, it will make your credit score go down. 

Multiple Choice

In order to keep your credit score balanced, you should have which type of credit?

• Credit Cards

• Utility Bills

• Installment Loans

• All of the above