Credit Review 2

Benefits of credit cards include:

• safe and convenient, bonuses are offered
• allows you to build a positive credit report
• Used for reservations and online shopping

• all of these

The maximum amount you may borrow on a credit card is known as:

• creditworthiness

• credit report

• credit limit

• None of the above

How can you avoid paying interest fees on your credit card?

• Only use it for groceries
• pay off the full balance, on time, each month
• you cannot avoid interest fees
• only use Discover

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

There’s no penalty if I pay my credit card balance after the due date.

• True

• False

What is a cash advance?

• Using one credit card to pay off another credit card

• Taking out physical cash with your credit card

• A quick way to improve a credit score

• None of the above

What is a balance transfer?

• Using one credit card to pay off another credit card

• Taking out physical cash with your credit card

• A quick way to improve a credit score

• None of the above

An annual fee is an amount paid to you by the credit card company for using their service each year.

• True

• False

What is the grace period on a credit card?

• The time between billing cycles

• The time you have to pay your balance without incurring interest

• None of the above

• The time you have to apply for a new card

What does APR stand for in credit card terms?

• None of the above

• Annual Penalty Rate

• Annual Payment Rate

• Annual Percentage Rate