credit cards

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 because now there will be interest added.

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

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How is charging a purchase like getting a loan?

• You borrow money from your credit provider.
• You borrow money from the store in order to pay your credit provider.
• You borrow money from an ATM in order to pay your credit provider.

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

The least amount that must be paid on a credit card each month is

• Late Fee
• Credit Limit
• Payment amount
• Minimum Payment

How can a cardholder avoid paying interest on a credit card?

• Do not pay anything
• Pay the minimum payment after its due date
• Pay the minimum balance every month
•  Pay the balance in full every month

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

What is a good practice when it comes to credit cards?

• getting as many credit cards as possible

• paying only the minimum

• charging anything you want

• paying the amount charged in full each month

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

• True

• False

If you owe $5000 on a credit card with 18% interest and you pay it off at the minimum payment of $100 per month, how long will it take?

• 93-94 months

• 50-51 months

• 340-341 months

• 113-114 months

If you owe $5000 on a credit card with 18% interest and you pay it off at the minimum payment of $100 per month, how much will you pay in interest?

• $4312

• $5486

• $900

• $11,675