Credit and Credit Cards

Which of the following situations is an example of responsibly taking on debt in an effort to establish a credit score while you are in school.

• Get a credit card but don't use it

• Ma out your credit limit each month

• Become an authorized user on an adult's card

• Make only the minimum payment each month

How can you build a positive credit history as a college student?

• Get a credit card but don't use it to avoid more debt

• Spend up to your credit limit each month

• Become an authorized user on an adult's card

• Make only the minimum payment each month

Which of the following does NOT contribute to your credit score?

• Your payment history

• Which banks issued your credit cards

• Your debt-to-credit ratio

• Length of credit history

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

It would be best to have a high credit score

• True
• False

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 pay off first

• Chase Sapphire

• American Express

• Interest rate does not affect your minimum payments

• Both will be paid off at the same time

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

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

Benefits of credit cards include:

• safe and convenient

• allows you to build a positive credit report

• some offer benefits

• safest way to shop online