Credit Cards

What does APR stand for?

• Annual Percentage Rate

• Annual Penalty Rate

• Average Percentage Rate

• Accumulated Penalty Rate

What does MPR stand for?

• Monthly Percentage Rate

• Monthly Penalty Rate

• Maximum Percentage Rate

• Minimum Penalty Rate

Which of the following is true about credit card interest?

• It only applies if you pay off your balance in full.

• It’s charged on all purchases immediately.

• It’s charged on the unpaid balance if you carry it to the next month.

• You’re always charged interest regardless of payment.

What is a credit card grace period?

• The time before interest is charged on new purchases

• The time before you can use the card after activation

• A bonus period where purchases are free

• The period when the cardholder gets a reward

What happens if you only pay the minimum payment on a credit card?

• You are not charged any interest.

• You will pay interest on the remaining balance.

• Your credit score improves immediately.

• You avoid paying any fees.

Which of the following can increase your credit card’s interest rate?

• Paying your balance early

• Making late payments

• Reducing your credit limit

• Requesting a credit limit increase

What is the primary benefit of paying your credit card balance in full each month?

• You earn more rewards points.

• You avoid paying interest on purchases.

• Your credit limit automatically increases.

• You receive a cash bonus.

What is the typical range for credit card interest rates (APR)?

• 0% to 5%

• 5% to 10%

• 10% to 25%

• 25% to 50%

What is a balance transfer on a credit card?

• Moving your credit card balance to a new card with a lower interest rate

• Transferring money from your credit card to your bank account

• Paying off your credit card balance in full

• Increasing your credit card limit

What is the impact of a credit card cash advance?

• It has no fees or interest.

• It is interest-free for the first 30 days.

• It typically incurs a higher interest rate and fees.

• It improves your credit score.