Credit Card Statement Fine Print

In reviewing your Summary Account Activity (#1), you notice FEES CHARGED $69.45. This fee was assessed on your account for the following reasons EXCEPT...

• Late Payment Fee

• Balance Transfer Fee

• Cash Advance Fee

• Annual Fee

How much do you currently owe on this credit card?

• $535.07

• $785.00

• $529.57

• $1,784.53

Which of these transaction types DECREASE how much you owe the credit card company?

• Balance Transfers

• Cash Advances

• Payments

• Interest Charged

Before sending in your payment to the credit card company, you go to a bicycle store. Approximately, how much can you spend before going over the credit limit on your card?

• $0, you are already over your credit limit

• $200

• $500

• $2000

A general rule of thumb is to keep your credit utilization rate at 30% or lower. What is your approximate credit utilization rate for this current billing cycle? (Hint: Credit Utilization Rate = Balance / Credit Limit)

• 30%

• 50%

• 70%

• 90%

Which of the following statements is FALSE?

• If you pay the MINIMUM PAYMENT of $53.00, you will not have to pay interest for the balance you still owe.

• If you pay only the minimum payment AND DO NOT make any additional charges on your card it will take you 10 years to pay off your card.

• If you pay $9.00 more than your minimum payment of $53.00 (or $62.00), you will reduce the time to pay off your credit card debt to three years.

• If you want to pay off your credit card debt faster you should pay more than the minimum payment every month.

The statement says that you’ve triggered the Penalty APR so that it has now increased to 28.99%. What action triggered this?

• You paid your last bill online in full by the due date.

• You paid only the minimum payment by the due date.

• You failed to pay the minimum payment by the due date.

• You failed to pay your late payment fee.

When does the penalty APR of 28.99% go into effect?

• January 1st

• April 10th

• April 20th

• December 31st

You were charged interest of $6.31 for Purchases (near section 8). Why?

• You paid off your entire balance from the month before.

• You had a balance of $535.07 from the previous month and only paid $450.00 so you didn’t pay off your balance in full.

• You borrowed more than your credit limit and were charged interest on the amount you borrowed over your limit.

• The credit card company paid you interest for the purchases you made on their credit card.

Your friend, Caitlyn, does not think it is important to review her monthly credit card statement. Instead, she just sets up an automatic minimum payment on the 18th of each month. Convince Caitlyn that this is a bad idea.