Credit Cards Quiz Ch 11

What happens when you don't have enough money to pay for the things you charged?

• You end up owing less than the original amount of money you charged.
• You end up owing more than the original amount of money you charged.
• You end up owing the same amount of money you charged, it just takes a while to pay off.

Examples of penalty fees include:

• over-the-limit fee
• late payment fee
• returned payment fee
• all of these

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 charge $500 on each of your two credit cards. One is American Express with an interest rate of 15.99%. The other is Chase Sapphire with an interest rate of 20.99%. Assuming that you are only making the minimum payment of $25 to each of the credit card companies, which card will you pay off first

• Chase Sapphire
• American Express
• Interest rate does not affect your minimum payments
• All of the above

Benefits of credit cards include:

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

Examples of penalty fees include:

• over-the-limit fee
• late payment fee
• returned payment fee
• all of these

Which of the four types of debt does a credit card always represent?

• Secured

• Unsecured

• Revolving

• Non-Revolving

What % or Americans have Credit Card Debt?

• 15%

• 36%

• 47%

• None of the Above

APR is Death by Debt because:

• You can pay interest over and over on the same money spent

• Credit Cards typically have unreasonably high interest rates

• Over time you may spend more on interest than on your original purchase

• All of the above

What is meant by debt consolidation?

• The process of combining debt and selling to another bank in order to make a profit and alleviate potential loss from a bad creditor

• The process of combining several small accounts into one larger account that you may be able to finance at a lower rate at a bank or another bank