Credit Card Knowledge Quiz

What is the main purpose of a credit card?

• To store cash securely

• To allow purchases now and pay later

• To replace a debit card

• To withdraw cash from an ATM

What does APR stand for in relation to credit cards?

• Annual Percentage Rate

• Average Payment Ratio

• Automated Payment Requirement

• Account Processing Rate

Which factor has the greatest impact on your credit score?

• The number of credit cards you own

• Your payment history

• The amount of money in your savings account

• Your yearly income

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

• Your balance is paid in full

• You avoid paying any interest

• You will pay more in interest over time

• Your credit score increases

What is a credit limit?

• The maximum amount you can charge on your card

• The amount you owe each month

• The amount of interest you pay

• The minimum amount due on your card

What is the grace period on a credit card?

• The time between making a purchase and the transaction posting

• The time between the statement date and the payment due date when no interest is charged

• The time you have to dispute a charge

• The time it takes to receive a refund

What happens if you exceed your credit limit?

• Your credit score increases

• The card company automatically raises your limit

• You may face fees or declined transactions

• The excess amount is erased

How can you avoid paying interest on a credit card?

• By making only the minimum payment

• By paying the full balance each month

• By only using the card for emergencies

• By calling the credit card company

What is a secured credit card?

• A credit card with no credit limit

• A card backed by a cash deposit

• A card used only for online shopping

• A card that doesn’t require a credit check

What does a balance transfer do?

• Moves debt from one credit card to another

• Converts a credit card into a debit card

• Transfers funds from savings to credit

• Withdraws cash from your credit card