12.12 How to Read a Credit Card Statement

What is the primary purpose of the video mentioned in the text?

• To discuss the latest news in the credit card industry

• To review different credit cards available on the market

• To explain how to properly read and understand a credit card statement

• To teach viewers how to use cash advances

What is the 'new balance' on a credit card statement?

• The amount of money deposited into the account

• The minimum payment required by the due date

• The total rewards points earned

• The balance on the card as of the statement date

What does the 'minimum payment' on a credit card statement indicate?

• The total amount of money spent on purchases

• The least amount that must be paid to avoid a late payment fee

• The amount needed to pay off the new balance in full

• The maximum amount that can be charged to the card

Why is it recommended to avoid using a credit card for cash advances?

• Because it usually involves high fees and interest rates

• Because it decreases the credit score

• Because it reduces the amount of rewards points earned

• Because it increases the credit limit

What is the significance of the 'closing date' on a credit card statement?

• It is the date the credit card account was opened

• It is the date the balance is reported to the credit bureau

• It is the date by which the new balance must be paid in full

• It is the last day to apply for a credit card

What does a 'past due amount' indicate on a credit card statement?

• The total balance transferred from another card

• The total amount of rewards points available

• The sum of minimum payments that have been missed

• The amount of money deposited into the account

What should the 'balance over the credit limit' ideally show on a credit card statement?

• The amount of money owed in fees

• The total amount of cash advances taken

• Zero, indicating you haven't exceeded your credit limit

• The total credit limit available on the card

How can one avoid paying interest on a credit card?

• By paying off the new balance in full by the due date

• By transferring the balance to another card

• By only using the card for cash advances

• By exceeding the credit limit

What is the 'credit limit' on a credit card?

• The minimum payment required each month

• The maximum amount that can be charged to the card

• The total amount of rewards points earned

• The sum of all late payment fees

Why is it important to pay attention to the 'new balance' on your statement?

• It shows the total amount of rewards points earned

• It indicates the credit limit of the card

• It is the balance that gets reported to the credit bureau

• It represents the sum of all late payment fees