RTW - FDIC - Charge It Right

All of the following are benefits to having a credit card and good credit EXCEPT

• You can make large purchases and pay for them over time

• It may be easier to gain employment or purchase a home

• They can be useful in times of emergencies

• You pay higher interest charges on any credit card balances

Which of the following should you consider when determining if you are ready for a credit card?

• Whether you can afford the monthly payments

• What you will purchase on the credit card (needs vs wants)

• How much will items be after interest vs paying with cash

• All of the above

What is the most important information to read before applying for a credit card?

• Truth in Lending Disclosure for the credit card

• Financial institution’s lending policy statement

• Credit card perks or reward systems

• Monthly credit card statement

What steps should you take when applying for a credit card?

• Apply for the first offer you receive or find

• Apply for retail store cards only

• Compare several cards and choose the best one for you

• Apply for credit cards with the lowest introductory rates

Which of the below factors do credit card issuers take into account before issuing a card?

• Credit history

• Income

• Current debt

• All of the above

What will happen to your credit card payment if the Annual Percentage Rate (APR) increases?

• It decreases and the credit card company will pay a higher %

• It will also increase

• It stays the same, but you have to pay over a longer time

• It stays the same, but your credit limit is reduced

What is the first step you should take if your credit card is lost or stolen?

• Review your statement for any purchases you did not make

• File a police report

• Immediately report the lost/stolen card with the card issuer

• Have a new card issued

Which of the following accurately describes credit cards?

• Allows unlimited purchases without a set dollar limit

• Used to purchase goods/services and pay for them over time

• You must always pay the balance in full each month

• Money is withdrawn from your checking account at purchase

How can you reduce the interest you pay on a credit card and the time to pay off the debt?

• Pay the minimum payment

• Pay more than the minimum payment

• Pay off the balance in full each month

• Both B. and C.