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WorksheetsCredit Cards
Total questions: 15
Worksheet time: 16mins
Name
Class
Date
1.
The cost of credit expressed as a yearly interest rate is known as:
a)
Annual Percentage Rate (APR)
b)
Annual Fee
c)
Penalty APR
d)
Introductory Rate
2.
Benefits of credit cards include:
a)
safe and convenient, bonuses are offered
b)
allows you to build a positive credit report
c)
needed for reservations and online shopping
d)
all of these
3.
The maximum amount you may borrow on a credit card is known as:
a)
creditworthiness
b)
credit report
c)
credit limit
d)
variable rate of credit
4.
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.
5.
Examples of penalty fees include:
a)
over-the-limit fee
b)
late payment fee
c)
returned payment fee
d)
all of these
6.
How can you avoid paying interest fees on your credit card?
a)
Only use it for groceries
b)
pay off the full balance, on time, each month
c)
you cannot avoid interest fees
d)
only use Discover
7.
It is wise to compare credit card offers before choosing one
a)
True
b)
False
8.
The cost of borrowing money is referred to as
a)
Interest
b)
Annual Percentage Rate
c)
Credit
d)
Credit Line
9.
Paying the minimum payment on a credit card every month will:
a)
Pay a large percentage of the total balance owed every month
b)
Make the final amount paid substantially higher than the amount initially charged to the card
c)
help the cardholder create a plan for paying of a credit card in a decent amount of time
d)
allow the cardholder to avoid paying any interest charges
10.
Having a high credit score will allow lenders to give you lower interest rates.
a)
True
b)
False
11.
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
12.
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 minimum balance every month
d)
Pay the balance in full every month
13.
You have a choice between two credit cards: American Express 8.99% or Chase Sapphire 12.99%. Which card offers the better rate?
a)
American Express
b)
Chase Sapphire
c)
Neither
d)
All of the above
14.
There’s no penalty if I pay my credit card balance after the due date.
a)
True
b)
False
15.
What is a good practice when it comes to credit cards?
a)
getting as many credit cards as possible
b)
paying only the minimum
c)
charging anything you want
d)
paying the amount charged in full each month
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