Understanding Credit Cards Quiz

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

• Debit card immediately withdraws money from the bank account, while credit card charges at the end of the month

• Debit card charges interest, while credit card does not charge interest

• Debit card charges at the end of the month, while credit card immediately withdraws money from the bank account

• Debit card offers rewards, while credit card does not offer rewards

How does using a credit card help in building credit?

• By increasing the amount of money in the bank account

• By using the credit card for large purchases only

• By decreasing the credit score

• By consistently paying the credit card bill on time

What are the consequences of not paying the end-of-month credit card bill on time?

• Credit score will improve

• Interest payment will increase steeply and late fee may be charged

• Late fee will be waived

• Interest payment will decrease

What should be considered when choosing a credit card?

• Interest rate, annual fees, and late payment fees

• The bank's location

• The design of the card

• The color of the card

What type of credit card is specifically meant for college students with little or no credit history?

• Low-interest card

• Rewards card

• Student card

• Business card