Credit Cards and Student Loans

What is the main risk of only making the minimum repayment on a credit card?

• You get cash rewards

• Your balance reduces quickly

• You pay more interest over time

• Your credit score improves

What does "interest-free period" on a credit card mean?

• You won’t be charged interest if you pay in full by due date

• You never pay interest

• You pay less tax

• The bank pays your bills

Which of these is a consequence of missing multiple credit card payments?

• You win a prize

• Your credit limit increases

• Your credit score goes down

• You earn reward points

What is the typical interest rate on credit cards in NZ?

• 2–5%

• 10–12%

• 18–25%

• 30–35%

Which of the following is a smart use of a credit card?

• Buying things you can’t afford

• Paying off the full balance every month

• Ignoring statements

• Using it for every small purchase

What is a credit limit?

• The amount you earn each week

• The amount of interest you pay

• The maximum amount you can borrow on your credit card

• The total cost of your student loan

What happens if you pay your credit card bill late?

• You get a bonus

• You avoid interest

• You may be charged late fees

• Your debt disappears

Who manages student loans in New Zealand?

• NZQA

• Ministry of Education

• StudyLink

• MSD

When do most NZ students start repaying their student loan?

• While studying

• When they turn 25

• When they earn over the threshold

• Immediately after borrowing

What is the current income threshold for repaying a student loan in NZ (as of 2024/25)?

• $14,000
  

• $21,268

• $50,000

• $100,000