Credit Card Knowledge Quiz

What is a credit card limit?

• The minimum amount you must spend.

• The maximum amount of money you can spend using the account.

• The amount of money you owe the bank.

• The interest rate on your card.

How do you avoid paying fees and interest on your account?

• Pay the card off in full every month.

• Only pay the minimum amount due.

• Ignore the payment due date.

• Spend more than the credit limit.

What happens if you do not pay back the money on a credit card?

• You receive a reward.

• You can be charged late fees and interest.

• The bank forgives the debt.

• Your credit limit increases.

What is the consequence of not following the rules for a credit card account?

• You get a higher credit limit.

• You can be charged late fees and interest.

• You receive a bonus.

• You get a lower interest rate.

What should you do to avoid paying late fees on a credit card?

• Pay the card off in full every month.

• Pay only the interest.

• Skip a payment occasionally.

• Pay after the due date.

What is a potential con of having a credit card?

• You can earn rewards

• You can build up debt if you spend more than you can pay back

• You can make hotel reservations

• You can protect your purchases

What is a pro of paying your credit card bill on time?

• You will be charged fees

• You will build up debt

• You will have a good credit score

• You will be charged interest

What is a potential risk of not paying your credit card bill in full?

• You will earn rewards

• You will be charged interest

• You will improve your credit score

• You will protect your purchases

What is a benefit of credit card rewards?

• They help you build up debt

• They make it harder to limit spending

• They offer incentives like cashback or points

• They charge you fees

What is a credit score?

• A measure of your income level

• A number between 300 and 850 based on credit management

• A ranking of your job performance

• A score given for your savings account balance