Credit Cards Budget Challenge Week 5

Select the most likely consequence of making payments late to a card that has an introductory rate.

• Fees and paying the default interest rate on the balance

• Fees and paying the introductory interest rate on the balance

• None of these answers are correct

• Paying higher interest rates

Zach is an authorized user on his parents' credit card. What may happen if Zach doesn't use the card in a responsible way?

• None of these answers are correct

• Zach and Zach's parents' credit may be damaged

• Zach's credit may be damaged

• Zach's parents' credit may be damaged

If the typical balance on Lucy's credit card is $650 and the interest rate (APR) on her credit card is 18%, how much in interest would you expect Lucy to be charged in a typical month?

• About $9.75

• About $51.74

• About $6.67

• About $80.86

• About $14.15

Suppose you have two credit cards. The first has a balance of $410 and a credit limit of $1,000. The second has a balance of $510 and a credit limit of $1,000. What is your overall credit utilization?

• 16%

• 26%

• 36%

• 46%

• 56%

Jerry lost her credit card and instead of reporting it right away, she decides to continue looking for it for a couple of days. On the second day, she makes the call and reports the card lost/stolen to the credit card company. She then logs into the account activity page of her credit card and sees a recent $500 purchase that was made by someone else. How much of this $500 charge will Jerry have to pay?

• $0

• $50

• $500

• $250

• $300

If you are unable to pay your credit card,

• you should not pay them until you can.

• you should ignore their calls when you miss your payments.

• you should call them, explain the situation, arrange a payment plan or close the account with an arrangement for payment.

• you should borrow money from your family and friends to pay the bill.