Credit Card Mistakes for Beginners Quiz

What is a common mistake beginners make when applying for credit cards?

• Only applying for cards with annual fees

• Not applying for any cards

• Ignoring credit card offers

• Applying for too many cards at once

What is the impact of hard inquiries on your credit score?

• They increase your credit limit

• They permanently lower your score

• They can temporarily lower your score

• They have no impact

Why is it important to consider opportunity costs when choosing a credit card?

• To avoid paying annual fees

• To avoid hard inquiries

• To ensure you get the highest credit limit

• To maximize potential benefits and rewards

What should beginners focus on when starting with credit cards?

• Starting with no annual fee cards

• Applying for as many cards as possible

• Ignoring credit card offers

• Getting cards with high annual fees

What is a key factor in maintaining a good credit score?

• Ignoring your credit utilization

• Applying for multiple cards at once

• Paying off your balance in full each month

• Maxing out your credit card

How can maxing out a credit card affect your credit score?

• It increases your credit limit

• It can negatively impact your credit score

• It has no effect on your credit score

• It improves your credit score

What is a potential risk of zero percent APR offers?

• They always have high annual fees

• They can lead to increased credit utilization

• They require immediate full payment

• They offer no rewards

What is a common misconception about zero percent APR offers?

• They are always beneficial

• They have no impact on credit utilization

• They can lead to debt if not managed properly

• They require no payments

Why should you keep a no annual fee credit card open?

• To avoid paying interest

• To receive more offers

• To increase your credit limit

• To maintain a longer credit history

What happens if you close a no annual fee credit card?

• It immediately improves your credit score

• It has no impact on your credit history

• It can eventually erase the credit history associated with it

• It increases your credit limit