Credit Card Knowledge Quiz

What are credit cards considered as?

• Free money

• Loans

• Gifts

• Investments

What must you do to avoid paying interest on a credit card?

• Pay your bill on time

• Spend more than the limit

• Ignore the bill

• Use another card

What does a credit score measure?

• Your income level

• How reliable a payer you are

• Your spending habits

• Your savings

Why is having a good credit score important?

• So you can buy a car or a house

• To avoid taxes

• To get approved for loans at low interest rates

• To increase spending limits

What is one thing to consider when getting a credit card?

• The color of the card

• Annual fee

• The bank's location

• The card's design

What is required to become an authorized user on a family member's account?

• A high income

• Good credit

• A personal loan

• A business account

What is a secured credit card?

• A card with no limit

• A card that requires a deposit to open

• A card with high interest rates

• A card for international use

What does a student credit card usually have?

• Higher interest rates

• Lower Annual Percentage Rate

• No credit limit

• No fees

What is the balance on a credit card?

• The amount you spend that month

• The total credit limit

• The interest rate

• The annual fee

What do lenders use the deposit for in a secured credit card?

• To increase the credit limit

• To pay the balance

• To offer rewards

• To reduce interest rates