Understanding Credit Card Basics

What is a good thing to look for when choosing a credit card, especially if you are new to credit?

• A card with a high annual fee.

• A card that charges a fee every year.

• A card with no annual fee.

• A card that gives you many rewards.

What does APR stand for on a credit card?

• Annual Payment Rate

• Average Percentage Rate

• Annual Percentage Rate

• Approved Payment Rate

What can happen if you make a late payment on your credit card?

• Your interest rate will go down.

• You will get a late payment fee and a higher interest rate.

• The credit card company will send you a gift.

• Nothing, as long as you pay it eventually.

What is a grace period on a credit card?

• The time you have to pay your bill before you get charged interest.

• The time you have to spend money before your credit limit is reached.

• A special discount period for new customers.

• The time you have to cancel your card without penalty.