Module 2- Credit 101 - Section 2 Quiz

What is a credit card?

• A card that holds your own money

• A way to get free stuff from the bank

• A tool that lets you borrow money to make purchases

• A special kind of debit card

What happens if you don’t pay your credit card bill in full by the due date?

• Your credit limit increases

• You’re charged interest

• Your balance is erased

• You get more reward points

What is a credit limit?

• The minimum amount you have to spend

• The total amount of money you earn

• The maximum amount you can borrow on a card

• The number of cards you’re allowed to have

What’s the smart way to treat your credit card?

• Like free money

• Like cash—only spend what you can pay off

• Like a gift card

• Like a reward machine

What’s one benefit of paying your full credit card balance each month?

• You earn more rewards

• You avoid paying interest

• Your credit limit resets

• You get a new card

Why is it important to keep your credit usage under 30%?

• To avoid overspending

• To earn bonus points

• To raise your credit score

• Both A and C

What should you do to avoid missing payments?

• Just try to remember the due date

• Only use the card once a month

• Set up autopay or calendar reminders

• Pay only the minimum due

Which of the following is a good way to build credit at 18?

• Open 5 cards at once

• Get added as an authorized user on a parent’s card

• Share your PIN with a friend

• Wait until you’re 30

What’s a safe credit card habit?

• Posting your card info online

• Sharing your security code with a best friend

• Shopping on “http” websites

• Reviewing your monthly statements

Why can credit card rewards be risky?

• You have to use your whole credit limit

• They make people overspend

• Interest can cancel them out if you carry a balance

• Both B and C