Credit and Credit Cards

The cost of credit expressed as a yearly interest rate is known as:

• Annual Percentage Rate (APR)
• Annual Fee
• Penalty APR
• Introductory Rate

The maximum amount you may borrow on a credit card is known as:

• creditworthiness
• credit report
• credit limit
• variable rate of credit

What is an annual fee? 

• The act of transferring money 
• A fee charged by a card issuer for being a card holder. 
• The days between the last statement and the current statement. 
• A fee charged to a cardholder's account once a payment is late. 

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

Paying the minimum payment on a credit card every month will:

• Pay a large percentage of the total balance owed every month
• Make the final amount paid substantially higher than the amount initially charged to the card
• help the cardholder create a plan for paying of a credit card in a decent amount of time
• allow the cardholder to avoid paying any interest charges 

Having a high credit score will allow lenders to give you lower interest rates.

• True
• False

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

Which information would NOT appear on your credit report?

• Credit Card balance

• Car loan

• Mortgage

• Debit Card balance

What is a credit score?

• A credit score is a three-digit numerical rating that reflects how likely you are to fail at paying your debts
• A five-digit numerical rating that reflects how likely you are to repay your debt. 
• A three-digit numerical rating that reflects how likely you are to repay your debt. 
• A credit score is a five-digit numerical rating that reflects how likely you are to fail at paying your debts

An "Excellent" Credit Score is in the range of:

• 300-579

• 750-850

• 900-999

• 600-749