Wise Practice Test

The cost of borrowing money is referred to as 

• Interest 
• Annual Percentage Rate 
• Credit 
• Credit Line 

The maximum amount you are allowed to carry as a balance on the card

• interest
• ARP
• credit limit
• all of these

This is a fee that some, but not all, credit card issuers charge to use their credit card.

• APR
• annual fee
• monthly fee
• non-sufficient funds fee

The amount you must pay on a credit card, based on a percentage of the outstanding balance.

• minimum fee
• minimum payment
• monthly statement
• minimum monthly interest charge

Which one is considered a danger of using a credit card

• no cash needed
• leads to overspending
• convenient
• earns rewards

To build a good credit history, you should

• open as much credit as possible quickly
• use the maximum credit allowed on all your credit cards
• pay on time and as much of your balance as possible
• all of these

What does APR stand for?

• American Peoples Reports
• Annual Progress Report
• American Percentage Rate
• Annual Percentage Rate

What financial habits determine your credit score?

• Payment History & Amount you owe 
• Length of credit history & Amount of new credit applied for recently
• Types of credit open
• All of these are correct

What are the three major Credit Reporting Agencies (CRAs)?  

• Equifax
• TransUnion
• Experian
• All of these are correct

What debt cannot be removed by declaring bankruptcy?

• Child Support
• Car Loan
• Credit Card
• Medical Bills