Payment Types Review

Which of the following payment types require you to pay upfront?

• Money Order

• Cashier's Check

• Prepaid Card

• All of these

Which of the following is true?

• Check and Debit Cards both withdraw directly from a bank account.

• Checks are the most widely accepted form of payment.

• Debit cards often have a higher interest rate than credit cards.

• Debit cards offer the highest level of fraud protection.

Which of the following is NOT true of credit cards?

• They offer the highest level of fraud protection.

• They offer the best payment type to use when trying to stick to a budget.

• You can be charged a fee if you are late making a monthly payment.

• Some offer rewards, like cash back or airline miles.

Which of the following tells you how much your credit card interest will be if you only pay the minimum balance each month?

• Late Fee

• Annual Membership Fee

• Balance Transfer Fee

• Annual Percentage Rate

Which payment type can help you stick to a budget?

• Credit Cards

• Debit Cards

• Payday Loans

• Cash Advances

Which of the following will happen if you miss a monthly credit card payment?

• You will be charged a late fee.

• You lose reward points.

• Your APR will increase the next month.

• Both A and B

If you are planning to carry a large balance on your credit card, which of the following credit card features should you look for?

• High APR

• Low APR

• Low balance transfer fee

• Cash Advance

What is a credit limit?

• The required payment to your credit card company.

• The amount of interest you are charged each month.

• The maximum amount you can charge each billing cycle.

• How many credit cards you can have.

What is the amount of money you still owe to their credit card company called?

• Credit Card Interest

• Credit Card Balance

• Credit Card Limit

• Credit Card Fee

Making a credit card minimum payment:

• means you are paying a small portion of your total credit card debt.

• is the same thing as making a late credit card payment.

• will have a negative effect on your credit score.

• will cause your credit card to be cancelled.