Credit Card Knowledge Quiz

What is APR in the context of credit cards?

• Annual Payment Rate

• Average Percentage Rate

• Annual Percentage Rate

• Applied Payment Rate

What is a grace period on a credit card?

• The time before a late payment fee is applied

• The time when no interest is charged on purchases

• The time when rewards points are doubled

• The time when payments are forgiven

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

• The balance is paid off faster

• No interest is charged

• The interest accumulates on the remaining balance

• The credit limit is increased

Which is an advantage of using credit cards?

• They provide unlimited spending.

• They help build credit history.

• They have no fees or interest.

• They don’t require repayment.

What is a common consequence of late credit card payments?

• Higher rewards

• Reduced credit limit

• Late fees and damage to credit score

• Automatic debt forgiveness

Which of the following is NOT a feature of a secure online shopping website?

• A padlock symbol in the URL bar

• An 'http' instead of 'https' in the URL

• A well-known brand name

• Reviews from other customers

What should you do before entering personal information on a website?

• Ensure the website has ads

• Check for secure 'https' in the URL

• Use your social media account to log in

• Disable pop-ups

Which of the following best describes credit utilization?

• The percentage of available credit used

• The total amount of credit owed

• The number of credit cards owned

• The credit score calculation formula

What does a high APR mean for a credit card user?

• Lower monthly payments

• Higher interest on balances carried over

• More rewards earned

• No annual fees

Which is a disadvantage of using credit cards?

• They can lead to overspending.

• They don’t offer rewards.

• They always require annual fees.

• They reduce your credit score automatically.