Credit Cards

Benefits of credit cards include:

• safe and convenient

• builds your credit

• bonuses/rewards

• all of the above

There’s no penalty if I pay my credit card balance after the due date.

• True

• False

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Using credit cards could lead to spending money you don't actually have.

• True

• False

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What will NOT help you build your credit history? Hint: which of these does not involve borrowing money?

• Auto loan

• Credit Card

• Debit Card

• Home mortgage

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.

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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.

• Your credit limit automatically increases.

• You receive a cash bonus.

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