Credit Card Quiz

What does APR stand for?

• Annual Point Ratio 
• Annual Percentage Rate
• A Percent Rate
• Annually Percentage Ratio

A high FICO score means you have better credit than someone with a low FICO score. 

• False
• True 

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 balance in full every month

• Pay the minimum balance every month

Grace Period - The time allowed to pay your balance without being charged a finance charge. Usually 25 to 30 days. 

• False
• True

The rule of thumb for credit card users is not to carry a balance over 30% of your credit limit.

• True

• False

Parents may add a child who is under 21 as an authorized user to an existing credit card.

• False

• True

According to the U.S. Federal Reserve, 46% of American adults have an outstanding balance on their credit cards.

• Correct

• Incorrect

Credit cards can help you build a credit history that will improve your chances of getting house or car loans in the future.

• False 
• True 
• A misleading statement 
• Myth

The three major institutions that keep credit records on individuals and businesses are _____, ______, and ______.

• Equifax, Experian, Trans Union
• Turbo Tax, Experian, Quicken Loans
• Equifax, Quicken Loans, H&R Block
• H&R Block, Turbo Tax, Trans Union