Credit and Debit Cards Quiz

Which type of credit card offers cash back and other benefits based on spending?

• Rewards cards

• Standard cards

• Secured cards

• Charge cards

What is a benefit of using credit cards?

• Building credit history

• Avoiding interest charges

• Unlimited spending

• No liability for theft

What is a potential drawback of using credit cards?

• Spending can lead to debt.

• They have no impact on credit scores.

• They offer no purchase protections.

• They cannot be used for online purchases.

What does the Fair Credit Billing Act allow credit card users to do?

• Dispute unauthorized purchases

• Avoid all interest charges

• Receive unlimited cash back

• Transfer balances without fees

What should you consider when choosing rewards cards?

• Whether rewards can expire

• The color of the card

• The card's magnetic strip

• The card's weight

What can help improve your credit score when using credit cards?

• Paying your bill on time

• Maxing out your credit limit

• Applying for new credit often

• Closing older accounts frequently

What is a debit card primarily used for?

• Deducting money directly from a checking account

• Borrowing money from the bank

• Earning rewards on purchases

• Building credit history

What is a benefit of using debit cards over credit cards?

• Fewer associated fees

• Higher interest rates

• More rewards programs

• Easier to incur debt

How can debit cards help avoid debt?

• By using money the user already has

• By offering high credit limits

• By providing cash advances

• By charging high interest rates

What is a common feature of debit cards regarding fees?

• No annual fee

• High annual fee

• Frequent late fees

• Over-limit fees