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Credit Card Quiz

Total questions: 20

Worksheet time: 11mins

Name
Class
Date
1.
What does APR stand for?
a)
Annual Point Ratio 
b)
Annual Percentage Rate
c)
A Percent Rate
d)
Annually Percentage Ratio
2.
A high FICO score means you have better credit than someone with a low FICO score. 
a)
False
b)
True 
3.

The least amount that must be paid on a credit card each month is

a)

Late Fee

b)

Credit Limit

c)

Payment Amount

d)

Minimum Payment

4.

How can a cardholder avoid paying interest on a credit card?

a)

Do not pay anything

b)

Pay the minimum payment after its due date

c)

Pay the balance in full every month

d)

Pay the minimum balance every month

5.
Grace Period - The time allowed to pay your balance without being charged a finance charge. Usually 25 to 30 days. 
a)
False
b)
True
6.

The rule of thumb for credit card users is not to carry a balance over 30% of your credit limit.

a)

True

b)

False

7.

Parents may add a child who is under 21 as an authorized user to an existing credit card.

a)

False

b)

True

8.

According to the U.S. Federal Reserve, 46% of American adults have an outstanding balance on their credit cards.

a)

Correct

b)

Incorrect

9.
Credit cards can help you build a credit history that will improve your chances of getting house or car loans in the future.
a)
False 
b)
True 
c)
A misleading statement 
d)
Myth
10.
The three major institutions that keep credit records on individuals and businesses are _____, ______, and ______.
a)
Equifax, Experian, Trans Union
b)
Turbo Tax, Experian, Quicken Loans
c)
Equifax, Quicken Loans, H&R Block
d)
H&R Block, Turbo Tax, Trans Union
11.
Fees are how credit card companies make money off of you.  Some of the most common fees include:
a)
Application fee  
b)
Annual fee
c)
Returned check fee
d)
All the above 
12.
You are able to obtain your free annual credit report every ____ months.
a)
18
b)
6
c)
12
d)
24
13.
FICO Scores are calculated from a lot of different credit data in your credit report and are scored from _____ to _____.
a)
100 to 1600
b)
300 to 850
c)
1 to 36
d)
1 to 2400
14.

You have a choice between two credit cards: American Express 8.99% or Chase Sapphire 12.99%. Which card offers the better rate?

a)

None of the above

b)

Neither

c)

Chase Sapphire

d)

American Express

15.
Identity theft occurs when someone uses your personal identifying information to either establish credit under your name or to take over an existing account that you established without your authorization.
a)
Correct 
b)
Incorrect 
16.

You charge $500 on each of your two credit cards. One is American Express with an interest rate of 15.99%. The other is Chase Sapphire with an interest rate of 20.99%. Assuming that you are only making the minimum payment of $25 to each of the credit card companies, which card will you have paid more interest for?

a)

Chase Sapphire

b)

American Express

c)

You pay the same amount of interest for both

d)

All of the above

17.

What is an annual fee?

a)

The act of transferring money

b)

A fee charged by a card issuer for being a card holder.

c)

The days between the last statement and the current statement.

d)

A fee charged to a cardholder's account once a payment is late.

18.

The cost of borrowing money is referred to as

a)

Credit Line

b)

Credit

c)

Annual Percentage Rate

d)

Interest

19.

This card is tied to your checking account.

a)

Credit Card

b)

Debit Card

c)

Social Security

d)

Drivers License

20.

What type of fee is given to a cardholder if they do not make the minimum monthly payment by the due date?

a)

Overtime fee

b)

Late- payment fee

c)

Misdemeanor

d)

Identify Theft fee