Credit Unit Test

The cost of borrowing money is referred to as 

• Interest 
• Annual Percentage Rate 
• Credit 
• Credit Line 

The amount charged if your payment is received after the billing due date.

• late payment fee
• overdue fee
• withdrawal fee
• loser fee

The maximum amount you are allowed to carry as a balance on the card

• interest
• ARP
• credit limit
• all of these

One of the 5 C's of credit that shows a person's willingness to pay is

• capital
• collateral
• character
• capacity

This is a fee that some, but not all, credit card issuers charge to use their credit card.

• APR
• annual fee
• monthly fee
• non-sufficient funds fee

The amount you must pay on a credit card, based on a percentage of the outstanding balance.

• minimum fee
• minimum payment
• monthly statement
• minimum monthly interest charge

Which one is considered a danger of using a credit card

• no cash needed
• leads to overspending
• convenient
• earns rewards

One of the 5 C's of credit that shows one's ability to pay is

• capital
• collateral
• character
• capacity

To build a good credit history, you should

• open as much credit as possible quickly
• use the maximum credit allowed on all your credit cards
• pay on time and as much of your balance as possible
• all of these

Over time, people who pay off their credit card balance in full every month will pay less in interest on their credit card.

• true
• false