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What do you know about Credit?

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Does it help your credit scores to carry a credit card balance from month to month?

a)

Yes

b)

No

2.

How does getting a NEW credit card affect your credit scores?

a)

It always hurts your scores

b)

It always helps your scores

c)

It depends

d)

It has no effect

3.

How does closing an older, paid-off credit card affect your credit score?

a)

It always hurts your scores

b)

It always helps your scores

c)

It depends

d)

It has no effect

4.

To improve your credit score, it’s smart to keep your credit balance:

a)

As high as possible

b)

Around 50% of your credit limit

c)

Around 30% of your credit limit

d)

As low as possible

e)

It doesn't matter how much, just as long as you carry some balance from month to month

5.

How many credit scores do most consumers have?

a)

Most people don't have one

b)

1

c)

2

d)

3

e)

More than 3

6.

Which of these factors is NOT included in your credit score?

a)

Payment history

b)

Household income

c)

Amount of credit you're using

d)

Types of credit in use

7.

How much is a credit card point or mile worth?

a)

Always 1 cent

b)

Depends on how you redeem

c)

Depends on whether it's a cash back or travel card

d)

Most aren't worth anything

8.

How do credit card companies make money? Select all that apply.

a)

a. Fees and interest paid by cardholders

b)

b. Investing your credit card debt

c)

c. Fees paid by merchants

d)

All of the above

9.

For most credit cards, when do you begin accruing interest on purchases?

a)

Once the bill is due

b)

As soon as the purchase posts to your account

c)

When you receive your statement

10.

Which of the following makes a card with an annual fee worthwhile?

a)

If the fee is waived in the first year

b)

If the fee is less than $50

c)

If you spend at least $15,000 a year on the card

d)

If the rewards add up to more than the fee

e)

It's never worth paying an annual fee