Credit Pre-Test

What is the least amount that must be paid on a credit card each month?

• Late Fee
• Credit Limit
• Monthly Payment

• 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 minimum balance every month
• Pay the balance in full every month

The credit company can charge interest if the credit card bill is not paid in full by the due date.

• True
• False

It is best to pay more than the minimum due on your credit card.

• True
• False

If you have a high credit score, you will receive a high interest rate.

• True
• False

A credit report shows a borrower's history of managing and repaying debt.

• True
• False

Only making the minimum payment on a credit card every month will result in _____. (Select all that apply.)

• Paying less in interest

• Paying more in interest

• Taking more time to pay off the balance

• Taking less time to pay off the balance

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

You charge $500 on each of your two credit cards. American Express has an interest rate of 15.99%, and Chase Sapphire has an interest rate of 20.99%. If you only make the minimum payment of $25 to each credit card company, which card will you pay off first?

• Chase Sapphire
• American Express
• Interest rate does not affect your minimum payments

You charge $500 on each of your two credit cards. American Express has an interest rate of 15.99%, and Chase Sapphire has an interest rate of 20.99%. If you only make the minimum payment of $25 to each credit card company, which card will you have paid more in interest?

• Chase Sapphire
• American Express
• You pay the same amount in interest for both credit cards