Credit Card Knowledge

A credit card is a source of free money.

• True
• False

Money that you have to pay every year for using a credit card.

• Yearly Fee
• Anniversary Fee
• Annual Fee
• Term Fee

How old to you have to be to apply for a credit card?

• 21
• 18
• 16
• 25

What does APR stand for?

• Annual purchase rate
• Annual percentage rate
• Approximate payment rotation
• Authorization processing rate

The maximum amount you may borrow on a credit card is known as:

• creditworthiness
• credit report
• credit limit
• variable rate of credit

Over time, people who pay off their credit card balance in full every month will pay less in interest on their credit card.

• true
• false

Benefits of credit cards include:

• safe and convenient, bonuses are offered
• allows you to build a positive credit report
• needed for reservations and online shopping
• all 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

Credit can lead to overbuying in some instances.

• True
• False

A plan for future spending and savings, weighing estimated income against estimated expenses.

• Income
• Expense
• Budget
• None of these