Credit and Debit Cards Quiz

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

• Debit card has a higher interest rate, while credit card has a lower interest rate

• Debit card has an annual fee, while credit card does not

• Debit card is linked to bank account, while credit card allows borrowing money

• Debit card is used for online shopping, while credit card is used for in-store purchases

Name one factor that can affect your credit score.

• Favorite color

• Amount of debt

• Number of pets

• Weather forecast

What are some common rewards and benefits of using a credit card responsibly?

• Decreased credit score

• Cash back, travel rewards, points for purchases, building credit history

• High interest rates

• No benefits or rewards

How does using a debit card affect your bank account balance?

• It increases the bank account balance.

• It has no effect on the bank account balance.

• It doubles the bank account balance.

• It decreases the bank account balance.

What is one way to improve your credit score?

• Apply for multiple new credit cards at once

• Make all your payments on time

• Ignore your credit report

• Max out all your credit cards

Why is it important to pay your credit card bill on time?

• To avoid late fees, interest charges, and maintain a good credit score.

• To support the credit card company's profits

• To show off your financial status

• To get more rewards and benefits

How can you avoid paying high interest on your credit card purchases?

• Make only the minimum payment each month

• Ignore your credit card statements

• Use your credit card for all purchases without keeping track of your spending

• Pay off your balance in full each month

What is the impact of not paying the minimum amount due on your credit card?

• Your credit score will improve

• You will be rewarded with bonus points

• Your credit limit will increase

• Your credit score may decrease and you may incur late fees

What is the benefit of using a credit card over a debit card for purchases?

• Credit cards offer more protection against fraudulent charges

• Credit cards have lower interest rates

• Credit cards are linked to your bank account

• Credit cards can be used for in-store purchases only

What happens when you withdraw cash using your credit card?

• You will earn reward points

• You will be charged a high interest rate

• Your credit score will improve

• Your credit limit will increase