Module 2 - Building and Managing Credit - Quiz

What happens if you only make the minimum payment on your credit card each month?

• Your balance goes away faster

• You build credit quickly

• You stay in debt longer and pay more in interest

• You earn more rewards

Why is maxing out your credit card a bad idea?

• It helps you earn more points

• It boosts your credit score

• It makes your card unusable

• It can lower your credit score

What’s the smartest way to approach credit card rewards?

• Spend more to earn more points

• Treat them as a bonus and never overspend

• Open multiple cards to get more rewards

• Ignore your balance if you’re getting points

Why should you avoid applying for too many credit cards at once?

• It’s illegal

• It can lower your credit score

• You won’t get approved

• It cancels your old cards

What’s a good rule of thumb for using your credit limit wisely?

• Always use at least 90% of your credit limit

• Use exactly half of your limit

• Keep your usage under 30% of your credit limit

• Use your full limit to build credit