Getting a credit card

Which of the following is the best definition of a minimum payment on a credit card?

• A fee that must be paid whether the card is used or not

• The smallest payment that will keep a credit card holder in good standing with the lender

• The interest on the purchases that were made on the credit card

• A low introductory payment offered by the lender for a few months until the card holder has established good credit

Chandra likes her new credit card. She uses it whenever she can, but she's careful to stay below her credit limit. After two months she notices her credit card bill includes huge finance charges. She chose her card because it featured 0% APR, so she doesn't think she should have any finance charges at all. What is the most likely explanation for the finance charges on Chandra's bill?

• The credit card company made a billing error

• This is a case of credit card fraud

• The introductory rate on the card is no longer in effect

• The APR does not apply because she is under the credit limit

The use of a debit card is most like:

• Using a credit card

• Using a check

• Borrowing money

• Lending money

Oh no! Someone stole your credit card and charged $2,500 worth of purchases before you even knew the card was missing. How much of the unauthorized charges can you be required to pay?

• zero

• $50

• $100

• $150

Matt has $471.60 in his checking account and feels he's doing pretty well financially.Then his car stops running. His mechanic is able to fix it in a day, but with the towing charges, parts, and mechanic's labor, he now needs to pay the service center $624.11 so he can drive his car to work. Of the following choices, which is the best course of action for Matt?

• Pay the service center with his Visa credit card

• Pay the service center with his MasterCard debit card

• Write a check for $624.11 and hope the service center doesn't take it to the bank before next payday

• Call his employer to say he won't be able to come to work

You forgot to pay last month's credit card bill. Your creditor will probably:

• Add finance charges and late fees to your bill

• Cancel your account

• Send you a reminder to pay the bill

• Reduce your minimum payment

You can best compare credit card offers by looking at these two features:

• APR and fees

• Minimum payment

• Principal and interest

• Introductory rate and credit limit

True or False. For consumers, a credit card offers convenience.

• True

• False

If your credit card is lost, the first step you should take is:

• Report your card as lost or stolen to your credit card company

• Retrace your steps to see if you can find it

• Call all the stores you shop in to see they found it

• none of the above

If you are sure that you will be able to pay off the balance of your credit card bill in full each month, you should consider:

• Only credit cards that offer zero annual fees even if the APR is high

• Raising your borrowing limit on your credit card so you can spend more

• Only credit cards that offer a low APR

• Getting two credit cards, so you always have a line of credit open for use