Credit cards

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 minimum balance every month
•  Pay the balance in full every month

You have a choice between two credit cards: American Express 8.99% or Chase Sapphire 12.99%. Which card offers the better rate?

• American Express
• Chase Sapphire
• Neither
• All of the above

You charge $500 on each of your two credit cards. One is American Express with an interest rate of 15.99%. The other is Chase Sapphire with an interest rate of 20.99%. Assuming that you are only making the minimum payment of $25 to each of the credit card companies, which card will you have paid more interest for?

• Chase Sapphire
• American Express
• You pay the same amount of interest for both
• All of the above

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Most credit cards have an APR of what %?

• 18-22%

• 5%-21%

• 20-30%

• 10-25%

The cost of credit expressed as a yearly interest rate is known as:

• Annual Percentage Rate (APR)
• Annual Fee
• Penalty APR
• Introductory Rate

What is a credit card? 

• a small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit.
• A card that has a set balance that you can only use at one place.
• A card with the money from your checking account. 

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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

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

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

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

• 21

• 18

• 16

• 25

The amount charged if your payment is received after the billing due date.

• late payment fee
• overdue fee
• withdrawal fee
• loser fee