Understanding Credit

To build a good credit history, you should

• pay the minimum or more on your account each month
• pay on time or early
• be careful not to take on too much debt
• all of these

Which of the following items can be found on a credit card statement?

• payments made and new charges
• fees and interest charged
• year to date totals and how long it will take you to pay it off w/minimum only
• all of these

It is wise to compare credit card offers before choosing one

• True
• False

The table that includes all the information about terms of a credit card and was designed to make it easy to compare cards is called the: 

• Shoe box
• Schumer box
• Schweiss box
• none of these

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

Set-up and maintenance fees include:

• annual fee
• account set-up fee
• participation fees
• all of these

Examples of penalty fees include:

• over-the-limit fee
• late payment fee
• returned payment fee
• all of these

Ned makes his payments late and even missed a payment. Because of this, his interest rate went up 10% on his credit card. Why would this be?

• The card company is out to get him
• It is a Federal law
• He didn't follow the terms and triggered the penalty terms of the card agreement 
• none of these 

Credit cards allow you to go to an ATM and withdraw cash. What is this called?

• balance transfer
• easy money
• cash advance
• none of these

Tom has a credit card charging 18% interest and has found a card which charges 9%. He would be wise to transfer his balance to the lower card if all other fees are equal

• You betcha!
• I'm not so sure....
• No way!