Loans and Credit Cards Quiz

What is the main difference between secured and unsecured loans?

• Secured loans have shorter repayment terms than unsecured loans.

• Secured loans are only available to individuals with good credit, while unsecured loans are available to anyone.

• Secured loans require collateral, while unsecured loans do not.

• Secured loans have higher interest rates than unsecured loans.

Which type of loan typically has a lower interest rate: personal loan or credit card loan?

• personal loan

• student loan

• mortgage loan

• credit card loan

What are the common fees associated with credit cards?

• returned payment fees

• overdraft fees

• credit limit increase fees

• annual fees, late payment fees, balance transfer fees, cash advance fees, and foreign transaction fees

What is the purpose of a credit card application process?

• To collect personal information for marketing purposes

• To provide individuals with a credit limit

• To allow individuals to apply for a credit card and undergo a review process to determine their eligibility.

• To offer rewards and benefits to credit card holders

What are the different types of loans available?

• personal loans, home loans, car loans, student loans, and business loans

• credit card loans

• payday loans

• mortgage loans

What is the credit limit on a credit card?

• The credit limit on a credit card is the minimum amount of money that a cardholder can borrow on their credit card.

• The credit limit on a credit card is the interest rate charged on the outstanding balance.

• The credit limit on a credit card is the annual fee charged for using the card.

• The credit limit on a credit card is the maximum amount of money that a cardholder can borrow on their credit card.

What is the difference between a debit card and a credit card?

• A debit card has a higher interest rate than a credit card.

• A debit card requires a credit check, while a credit card does not.

• A debit card offers rewards and cashback, while a credit card does not.

• A debit card uses your own money, while a credit card allows you to borrow money.

What are some ways to manage your credit card effectively?

• paying your bill on time, keeping your credit utilization low, monitoring your credit card statements regularly, avoiding unnecessary fees, and not maxing out your credit limit

• making only the minimum payment, ignoring your credit card statements, maxing out your credit limit, paying your bill late, not monitoring your credit card activity, incurring unnecessary fees

What is the concept of minimum payment on a credit card?

• The minimum payment on a credit card is the minimum amount of money that a cardholder is required to pay each month to keep the account in good standing.

• The minimum payment on a credit card is the maximum amount of money that a cardholder is required to pay each month to keep the account in good standing.

• The minimum payment on a credit card is the amount of money that a cardholder is required to pay each year to keep the account in good standing.

• The minimum payment on a credit card is the amount of money that a cardholder is required to pay each month to close the account.

What factors can affect your credit score?

• Your payment history, the amount of debt you have, the length of your credit history, the types of credit you use, and how often you apply for new credit.

• Your income, your employment status, your age, your gender, your marital status.