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WorksheetsUsing Credit Cards
Total questions: 25
Worksheet time: 17mins
You're actually borrowing money each time you make a credit card charge.
True
False
It's very difficult to run up a large credit card debt.
True
False
A credit card can come in handy if you are faced with an emergency.
True
False
If a credit card shows an UNPAID BALANCE, it means you have already paid your debt.
True
False
Credit Cards are useful when you're shopping by phone or on the Internet.
True
False
If your credit card company requires an annual service fee, you have to pay a certain amount ________.
every day
every month
every year
every now and then
A due date is the _______ day you can pay your bill without being charged a fine.
earliest
latest
the only time
A minimum payment is the ______ you must pay each month on your unpaid credit card balance.
most
least
average
The ________ is the amount of time you have to pay your bill without interest.
grace period
credit slip
balance
APR
If you pay your full credit card bill by the due date you will ________.
need to pay interest on the next bill
not be charged any interest
ruin your credit rating
lose weight
Each month you must make at least a minimum payment towards a credit card debt by the due date. Otherwise, you'll have to pay _________.
a costly late payment fee
the full balance next month
higher interest on your debt
a higher annual fee
The higher the APR (annual percentage rate), the ________.
more you pay in annual service fees.
less it costs to pay off a credit card debt
more it costs to pay off a credit card debt
more you pay in monthly service fees
Credit Card A: $40 annual fee, 14% APR
Credit Card B: No annual fee, 19.8% APR
To avoid an annual fee, Max chose credit card B. Then Max charged $1,000 to his credit card to cover a medical emergency. It took him two years to pay off that debt at 19.8% APR ($1,435.20)
At card A's 14% APR, the same debt would have cost Max $1,299.60, but he would have paid $80 in annual fees. How much would Max have saved if he had chosen card A?
(a)
Which is better?
a high APR
a low APR
Paying only the minimum payment will positively affect your credit score.
True
False
Paying only the minimum payment will cost you interest. You will end up paying a lot more for an item in the end!
True
False
Card A has an APR of 16.99% and Card B has an APR of 26.98%. Which card do you choose?
Card A
Card B
Card A has an APR of 21.99% and Card B has an APR of 16.98%. Which card do you choose?
Card A
Card B
Brady took his family out to eat. He handed the waitress a card to purchase the meal. This charge appeared on a bill that he paid three weeks later. What type of card is this?
Credit Card
Debit Card
Credit Card & Debit Card
If the card is lost or stolen, report it immediately. What type of card is this?
Credit Card
Debit Card
Credit Card & Debit Card
A PIN (Personal Identification Number). What type of card is this?
Credit Card
Debit Card
Credit Card & Debit Card
Interest may be charged, but can be avoided by paying the entire balance each month. What type of card is this?
Credit Card
Debit Card
Credit Card & Debit Card
Each purchase is a loan that is repaid later. What type of card is this?
Credit Card
Debit Card
Credit Card & Debit Card
Kristy’s gas pump went out as she was driving her car. Since she did not have enough money to cover the cost to replace the pump, she used a card that allowed her to pay later. What type of card is this?
Credit Card
Debit Card
Credit Card & Debit Card
