Credit Card Quiz

What is a credit card interest rate?

• The amount of money you owe on your credit card

• The fee charged by the credit card company for using the card

• The percentage of interest charged on the unpaid balance of your credit card

• The maximum amount you can spend on your credit card

Which of the following is a common method of credit card payment?

• Cash

• Cheque

• Online banking

• All of the above

What happens if you only pay the minimum amount due on your credit card?

• Your credit card will be cancelled

• You will be charged a late payment fee

• You will not be able to use your credit card anymore

• You will be charged interest on the remaining balance

What is the monthly percentage rate for a credit card?

• The amount of interest paid per month

• The only time you can make a payment on your credit card

• The time period during which you can apply for a credit card

• The debt you will accumulate if you do not pay your balance

Which of the following factors can affect your credit card interest rate?

• Your credit score

• Your income

• Your credit card usage

• All of the above

What is the best way to avoid credit card debt?

• Paying off your credit card balance in full each month

• Making only the minimum payment on your credit card

• Using your credit card for all your purchases

• Ignoring your credit card bills

What is APR (annual percentage rate) for a credit card?

• The annual fee charged by the credit card company

• The interest rate charged on cash advances

• Interest you pay in dollars

• The interest rate charged on balance transfers

Which of the following is a disadvantage of using a credit card?

• Building a good credit history

• Convenience of making purchases

• Risk of overspending and accumulating debt

• Earning rewards and cashback

What is the purpose of a credit card statement?

• To inform you about your available credit limit

• To provide a summary of your credit card transactions and balance

• To notify you about upcoming credit card offers

• To remind you to make a payment on your credit card

If the APR (annual percentage rate) is 25%, what is the MONTHLY percentage rate?

Hint: There are 12 months in a year.

• .025

• 25

• .0208

• .25