Credit Cards Quiz

When Kameron buys a new video game with his credit card, he

• automatically improves his credit score

• buys it now and promises to pay for it later

• pays for it now but receives it later

• decreases his debt

The bigger the payment that you make on your credit card bill, the

• less interest you will have to pay in total

• more interest you will have to pay in total

• higher your APR

• lower your annual fee

Kameron is planning to buy a car and he has a good credit score. This means he

• will never have to borrow money

• has never paid back money he owes on time

• is more likely to be denied a loan

• has a history of paying back money he owes on time

What is a minimum monthly payment?

• the minimum annual percentage rate on credit card

• the minimum amount on your credit card bill you need to pay each month

• the minimum you must purchase with your credit card each month

• the minimum interest you rack up each month

Which of the following is a false statement?

• Bad credit can make it hard for you to borrow money.

• Some credit cards come with low introductory costs.

• The interest you owe can never be more than your original purchase with a credit card.

• If you pay only the minimum monthly payment, your debt can add up quickly.

Mr. Messer has bad credit. He likely

• always paid his whole credit card bill on time

• doesn't have a credit card and has never borrowed money

• has a high chances of getting approved for loans

• will have a hard time getting approved for loans

Jacob hasn't established any credit at all. Which of the following is true?

• Jacob only makes the minimum payment every month

• his credit card company is tricking him

• He will have an easy time buying her first home

• Banks won't know if he's financially reliable.

Chris wants to buy a new car and needs a loan. Why is it important for Chris to have good credit?

• It helps Chris get approved for loans and credit cards.

• It allows Chris to buy things without paying for them.

• It decreases Chris's chances of getting a job.

• It increases Chris's chances of winning the lottery.

Tim wants to buy a new car but has bad credit. How does his bad credit affect his financial life?

• It makes it difficult for Tim to borrow money.

• It increases Tim's chances of becoming a millionaire.

• It guarantees Tim a high-paying job.

• It eliminates the need for Tim to pay bills.

Hayden missed paying his credit card bill last month. What is the most likely consequence he will face?

• He will receive a free vacation.

• His credit score will decrease.

• He will become a famous celebrity.

• He will win a Nobel Prize.