Credit Card Quiz

What does APR stand for?

• Annual Percentage Rate

• Average Payment Requirement

• Annual Payment Ratio

How is interest calculated on credit card balances?

• Simple interest

• Compound interest

• Variable interest

What is the consequence of exceeding the credit limit on a credit card?

• No consequence

• Lower interest charges

• Fees and penalties

How does a higher credit score affect the APR on a credit card?

• Increases the APR

• Decreases the APR

• No effect on the APR

What is the best way to compare credit card offers?

• Looking at the color of the card

• Comparing the APR and fees

• Choosing the first offer

What is the best way to handle a credit card with a high APR?

• Ignore the balance

• Pay the minimum payment

• Pay off the balance as quickly as possible

What is the consequence of carrying a high balance on a credit card?

• No consequence

• Lower interest charges

• Higher interest charges

What is the best way to avoid credit card debt?

• Ignoring the balance

• Making only the minimum payment

• Using credit responsibly and paying the full balance

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 balance in full every month

• Pay the minimum balance every month