Credit Card Quiz

A common advantage of using credit is:

• Less impulse buying

• lower cost for items purchased

• ability to obtain items now

• lower chance of overspending

A common disadvantage of using credit is:

• having to carry extra cash

• having a record of your purchases

• spending more than you should

• buying now, paying later

If you use credit, you should not:

• give your card number over the phone

• pay debts promptly

• read and understnad the credit contract

• tell anyone if your credit card is lost

When you pay all your bills on time, you are showing good:

• character

• capital

• collateral

• capacity

Which one of these would not be used to repay a debt?

• Income

• owned property

• collateral

• character references

Select the three best ways to build credit history:

• always pay in cash

• establish a steady work record

• pay all your bills on time

• bounce checks in your checking account

• make regular deposits into a savings account

David has a monthly net income of $1,360

He has a monthly rent payment of $450

He is paying $116 a month for a student loan.

How much cna david safely pay each month for his debts? (Hint: His monthly payments should be less than 10% of his monthly net income)

• $136

• $79.40

• $79

• $1,360

Comparing the APR of different credit cards allows you to get the:

• longest grace period

• lowest annual fee

• lowest interest rate

• lowest minimum payment

The smallest amount you can pay on a credit card account without paying a late payment fee is called the:

• late payment fee

• credit limit

• annual fee

• minimum payment

Which of the following is not important when choosing a credit card?

• the costs of the card

• the features of the card

• what the card looks like

• how you plan to use the card