Credit Card Vocabulary Heads Up Quiz

Why is it important to know if a credit card has an Annual Fee?

• It helps you decide if the card's benefits are worth the extra cost

• It determines the credit limit of the card

• It affects the interest rate on balance transfers

• It influences the penalty APR

What does APR stand for?

• Annual Payment Rate

• Annual Percentage Rate

• Annual Penalty Rate

• Annual Premium Rate

Why might someone use a Balance Transfer?

• To increase their credit limit

• To save money with a lower APR

• To avoid paying the annual fee

• To earn more rewards points

What is a Credit Card?

• A plastic card used to access a line of credit

• A card used only for debit transactions

• A card that provides free money

• A card used for storing cash

Why are Credit Cards considered convenient?

• They offer free money

• They help avoid debt and build good credit

• They have no fees

• They increase your bank balance

What is the purpose of the Schumer Box?

• To display the credit card's design

• To show important credit card terms and conditions

• To store credit card information

• To calculate monthly payments

What does the Penalty APR refer to?

• The regular interest rate

• The interest rate applied after a late payment

• The fee for balance transfers

• The annual fee for the card

What is an Introductory Rate?

• The regular interest rate

• A temporary lower interest rate offered at the start

• The rate for balance transfers

• The rate for cash advances

What is a Late Payment Fee?

• A fee for paying your credit card bill early

• A fee for not using your credit card

• A fee for paying your credit card bill after the due date

• A fee for exceeding your credit limit

Why is it important to pay your credit card bills on time?

• To avoid late fees and damage to your credit score.

• To increase your credit limit.

• To earn more reward points.

• To reduce the annual fee.