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Financial Literacy: Credit 8.2

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Interest and fees is the way...

a)

Credit Card Companies make their money

b)

Banks make their money

c)

Store cards make their money

d)

All of the above

2.

Which one is not a benefit of a credit card?

a)

Rewards

b)

Cash back

c)

Travel Points

d)

Interest

3.

Which example will happen to you if you do not pay off your credit card monthly by the due date?

a)

Rewards

b)

Travel Points

c)

Interest and Fees

d)

Cash Back

4.

When you apply for a credit card what type of information with the company consider when deciding a limit?

a)

Your credit history

b)

Income

c)

Paying your bills on time

d)

All of these may be considered

5.

What type of loan is a credit card?

a)

Long Term

b)

Short Term

c)

Free term

6.

Credit cards...

a)

Charge interest and fees

b)

Make money when you are late

c)

Can and do increase your limit

d)

All are true about credit cards

7.

When apply for a credit card is a good thing to read the entire application no longer so that you will?

a)

Understand the grace period

b)

Understand how much interest is being charged

c)

Understand the fees

d)

All of these things should be considered when applying for a credit card

8.

If you pay your bills on time which of the following could happen?

a)

Improve your credit score

b)

Increase your limit

c)

Get rewards

d)

All are a result of paying your bills

9.

What is a bad credit score?

a)

380

b)

480

c)

580

d)

780

e)

All of the above except 780 is undesirable

10.

What does FICO stand for?

a)

Fair Isaac Corporation

b)

Fair Isaac Company

c)

Fair Is Company

d)

Fair Isa Corporation