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WorksheetsCredit Cards
Total questions: 20
Worksheet time: 2hrs 40mins
What is a Credit Card?
A plastic card that takes money out of your checking account
A plastic card that allows you to buy things on credit
A plastic card that has a specific dollar value
A card giving you unlimited funds on credit to purchase goods + services
Which of the four types of debt does a credit card always represent?
Secured
Unsecured
Revolving
Non-Revolving
What % or Americans have Credit Card Debt?
15%
36%
48%
90%
What % of Credit Card holders cannot pay more than the minimum every month?
10%
40%
47%
55%
The average Credit Card Debt among Cardholders in the U.S. is _______________
$1050
$525
$4575
$7236
A "Transactor" - represented by 34% of Cardholders in the United States, is defined as:
A consumer who pays the minimum balance each month
A consumer who pays the entire balance each month
A consumer who uses credit cards for all purchases
A consumer who only uses debit cards to pay for goods and services
A payment card linked to your checking account that withdraws money immediately from your account is a:
Store Credit Card
American Express Card
Debit Card
None of the Above
A Plastic card issued by a financial institution that allows you to buy things on credit is:
Prepaid Debit Card
An ATM Bank Card
A Credit Card
Store Credit Card
A Credit Card limited to store use only is a:
Bank issued Credit Card
Student Credit Card
Store Credit Card
American Express Card
The difference between a CREDIT CARD (Visa/Mastercard) and a CHARGE CARD (American Express) card is:
Credit Cards must be paid in full each month
Credit Cards offers rewards but Charge Cardsdoes not
Charge Cards must be paid in full each month
Credit Cards calculate interest differently
The cost of credit expressed as a yearly interest rate is known as:
APR
APB
APS
APY
What is an annual fee?
A reward you are paid at the end of the year by the credit card company
A fee charged by a card issuer for being a card holder.
The minimum balance due each month on your account
The penalty you pay for not paying the full balance after 12 months
The cost of borrowing money is referred to as
Interest
APY
Principle
Credit Line
This is an amount - less than the total balance - that credit card issuers require you to pay each month:
APR
minimum payment
annual fee
user fee
What is a "Secured Credit Card"?
Safeguarded by an iris scan of the user
Only available for one purchase one time
A Credit Card that is backed by collateral of some sort
Guaranteed by your credit score
Student Credit Cards are:
Easier to qualify for than regular Credit Cards
Cards with lower credit limits than normal Credit Cards
An excellent way to begin building your credit score
All answers are correct
Credit Cards are great ways for you to get cash from a bank ATM machine
True
False
APR is Death by Debt because:
You can pay interest over and over on the same money spent
Credit Cards typically have unreasonably high interest rates
Over time you may spend more on interest than on your original purchase
All answers are correct
"Average Daily Balance", "Adjusted Balance", and "Previous Balance" are all different examples of:
Reward calculations for credit cards
Minimum charges for credit cards
Finance charge calculations for credit cards
None of the Above
Credit Cards are:
Dangerous if you cannot discipline your financial habits
Useful tools for to help build your credit score
Solid ways to protect your purchases and keep good financial records
All answers are correct
