Worksheets12.10 How to Read a Credit Card Statement
Total questions: 11
Worksheet time: 6mins
What is the primary purpose of the video mentioned in the text?
To discuss the latest news in the credit card industry
To review different credit cards available on the market
To explain how to properly read and understand a credit card statement
To teach viewers how to use cash advances
What is the 'new balance' on a credit card statement?
The amount of money deposited into the account
The minimum payment required by the due date
The total rewards points earned
The balance on the card as of the statement date
What does the 'minimum payment' on a credit card statement indicate?
The total amount of money spent on purchases
The least amount that must be paid to avoid a late payment fee
The amount needed to pay off the new balance in full
The maximum amount that can be charged to the card
Why is it recommended to avoid using a credit card for cash advances?
Because it usually involves high fees and interest rates
Because it decreases the credit score
Because it reduces the amount of rewards points earned
Because it increases the credit limit
What is the significance of the 'closing date' on a credit card statement?
It is the date the credit card account was opened
It is the date the balance is reported to the credit bureau
It is the date by which the new balance must be paid in full
It is the last day to apply for a credit card
What does a 'past due amount' indicate on a credit card statement?
The total balance transferred from another card
The total amount of rewards points available
The sum of minimum payments that have been missed
The amount of money deposited into the account
What should the 'balance over the credit limit' ideally show on a credit card statement?
The amount of money owed in fees
The total amount of cash advances taken
Zero, indicating you haven't exceeded your credit limit
The total credit limit available on the card
How can one avoid paying interest on a credit card?
By paying off the new balance in full by the due date
By transferring the balance to another card
By only using the card for cash advances
By exceeding the credit limit
What is the 'credit limit' on a credit card?
The minimum payment required each month
The maximum amount that can be charged to the card
The total amount of rewards points earned
The sum of all late payment fees
Why is it important to pay attention to the 'new balance' on your statement?
It shows the total amount of rewards points earned
It indicates the credit limit of the card
It is the balance that gets reported to the credit bureau
It represents the sum of all late payment fees
What does the statement closing date indicate?
The last date to pay your bill without interest
The date your credit card was issued
The date when your next bill will be generated
The end of your payment cycle
