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Debit vs Credit

Total questions: 12

Worksheet time: 7mins

Name
Class
Date
1.

How well do you remember the lesson about debit cards and credit cards?

a)

I remember a good amount

b)

I remember a medium amount

c)

I remember nothing

2.

What is a credit score?

a)

A number that multiplies your age and GPA

b)

A number that shows how well you pay back your loans

c)

A number that adds how much money you have across all bank accounts

3.

What is the most effective way to raise your credit score?

a)

Use up to 50% of your credit limit

b)

Open a new credit card every two months

c)

Pay off loans on time

4.

What is a credit limit?

a)

The maximum amount you can spend using a credit card

b)

The APR

c)

A number that combines your age and credit score

5.

Your bank will send you a credit card in the mail if you lose the one you have

a)

True

b)

False

6.

What is the difference between a debit card and a credit card?

a)

Debit: use your own money

Credit: use bank's money

b)

Debit: use bank's money

Credit: use your own money

7.

Why should you use a credit card responsibly instead of a debit card when you are able to?

a)

Because the bank is paying anyways

b)

To increase my credit score

c)

Because I might run out of money that is on the account connected to my debit card

8.

Pick a card: You are an 18 year old who wants your first credit card


Chase Freedom:

$200 bonus after spending $500, good credit score, $0 annual fee


Capital One Student

Easy to qualify for, limited credit score, $0 annual fee

a)

Chase Freedom

b)

Capital One Student

9.

Pick a card: You are an 30 year old who spends $1200 a month on purchases and does not travel often. You have a good credit score.


Chase Freedom:

$200 bonus after spending $500, good credit score, $0 annual fee


Delta Airline SkyMiles Card

Earn miles after first $3000 spent, good credit score, $550 annual fee

a)

Chase Freedom

b)

Delta Airline SkyMiles Card

10.

Pick a card: You earn $90,000 a year and spend $3000 a month. You travel at least two times per year.


Wells Fargo Propel:

3x points on travel, $200 bonus after $1000 spent, $0 annual fee


Delta Airline SkyMiles Card

Earn miles after first $3000 spent, good credit score, $550 annual fee

a)

Wells Fargo Propel

b)

Delta Airline SkyMiles Card

11.

When is it ever ok to max the credit card limit?

a)

When I know I have the cash to pay it off

b)

When I know I am going to get a new job

c)

Never

d)

It's always ok as long as I pay it off before I die

12.

When should you get a credit card?

a)

Right when I turn 18

b)

Right when I turn 18 AND have money to pay off the card

c)

When I get my first job