Credit Card Knowledge Quiz

Credit cards are generally used for such purchases as

• cars.

• homes.

• meals, clothing, and groceries.

• stocks.

Which of the following can be used by a creditor in deciding whether or not to grant credit?

• Credit history

• Race and gender

• Criminal history

• Credit history and criminal history

Historical credit problems normally remain on a credit bureau's report for seven years and ten years for bankruptcy.

• True

• False

One advantage of using a credit card is that you receive a list of your purchases, which enables you to keep track of your spending.

• True

• False

There are many incentives, such as discounts and bonuses, offered by credit card companies to get you to use their cards.

• True

• False

Your credit report can be requested online and should be checked periodically for errors.

• True

• False

It is a good idea to get and use as many credit cards as possible to build a credit history.

• True

• False

Even if you cannot pay your credit card bill in full, you should still attempt to pay as much as possible so that you can minimize finance charges.

• True

• False

A good credit history is built by the proper use and control of credit.

• True

• False

Which of the following actions will allow you to avoid interest charges on your credit card?

• Pay the minimum required payment each month.

• Avoid using cash advances.

• Pay the balance in 30 days.

• All of these.