Introduction to Credit and Debit cards

What is a primary benefit of using a credit card responsibly?

• It helps build a good credit history.

• It automatically increases your income.

• It guarantees approval for all loans.

• It eliminates all financial risks.

Which type of credit card offers rewards for each purchase?

• Secured credit card

• Debit card

• Rewards credit card

• Prepaid card

What is a common feature of low-interest credit cards?

• High annual fees

• 0% introductory APR period

• Unlimited credit limit

• No payment due dates

What is a secured credit card?

• A card that requires a security deposit

• A card with no spending limit

• A card that offers unlimited rewards

• A card that is only for students

Which payment network is NOT mentioned in the text?

• Visa

• UnionPay

• Mastercard

• Discover

What is the main purpose of a balance transfer credit card?

• To increase your credit limit

• To avoid all fees

• To earn cash back on purchases

• To transfer debt to a lower interest rate

Which of the following is NOT a type of credit card mentioned?

• Cash back card

• Store credit card

• Airline credit card

• Prepaid credit card

What is a key difference between a credit card and a debit card?

• Debit cards improve your credit score.

• Credit cards involve borrowing money.

• Debit cards offer better rewards.

• Credit cards are linked to a savings account.

What is a potential cost of carrying a credit card?

• Automatic credit score increase

• Interest payments

• Guaranteed rewards

• Unlimited spending

What is a benefit of a 0% introductory APR period on a credit card?

• It eliminates all fees permanently.

• It increases your credit limit automatically.

• It lets you avoid interest on purchases temporarily.

• It allows you to earn double rewards.