WorksheetsCompras
Total questions: 34
Worksheet time: 18mins
Over the limit fee is an additional fee credit card companies charge when you charge more than your available credit.
True
False
Withdrawing CASH (cash advance)using a credit card incur additional charges or higher interest rates compared to regular purchases.
True
False
Sarah decided to apply for a secured credit card at the City Bank. She was informed that a $300 deposit was required. What is Sarah's credit limit?
$300
$600
There is no specific limit.
What should you avoid when borrowing money?
Consolidating multiple debts into one
Creating a budget to track expenses
Opting for loans with very high interest rates
If your credit card has a limit of $2,000.00 and you've already spent $1,500.00, how much more can you spend?
$500
$600
Not sure
How do you know a website is secure when shopping online?
If it says secure when I make a purchase
make sure there an "S" in https
if it is form a known company you should not worry
Which approach ensures you will pay the MOST interest on your credit card debt?
Always pay more than the minimum balance.
Only make the minimum payment each month, (about 3% of your credit balance) and an occasional late payment.
Settle the full amount at the end of each billing cycle.
Which type of loan should consumers typically avoid due to high interest rates?
Personal Installment Loan
Mortgage
PAYDAY Loan
You pay the credit card companies NO INTEREST WHEN...
You pay keep charging items to your account consistently
You make only minimum payments
You are a deadbeat (pay the entire balance)
Comparison shopping is the best way to save money.
True
False
A standardized way of presenting the key terms and conditions of the credit card agreement is called...
Amortization
Statement
Schumer Box
APR stand for
Amortization Percentage Rate
Annual Percentage Rate
Annual Principal Rate
Which can your find listed on the Schumer Box? Check all that apply.
APR
Annual Fees
Cost of Penalties
Minimum payments you will pay every month
Some safety tips with credit cards include...
Throw away credit card offers
Keep phone numbers of credit car companies separate from your cards
Apply for many credit cards as possible
If a consumer does not carry a balance on their credit card, then
They do not pay interest. They only pay for the amount of their purchases.
They will pay interest any way
They do not pay interest and can make small payments.
What are some benefits of online shopping?
24 hr shopping, no aggressive people, easy comparison, unlimited item availability.
shipping and handling fees, price negotiation, delays on receiving products
Receiving the wrong product, no person available to talk
When buying online...
Use credit cards to increase protection
Pay with checks and money orders
You can ONLY pay withe Venmo, cashApp or Paypal
What is NOT a good practice when shopping online?
Call the customer service number to verify your transaction went through
exit the site quickly without checking that your order number is listed
Keep a copy receipt and a copy of your order
Some examples of negative credit card use include..
check all that apply
Making late payments
Paying only the minimum
Have only one credit card
Max out the card
one of the steps of obtaining a non secured credit card by yourself is..
Comparison shopping for a credit card
Call your mom and ask her to add you to hers
pay $500 to get $500 credit limit
When shopping online..Know exactly with whom you are dealing with.
True
False
When shopping Online..
Check all that apply
Know how much you will be charged, including shipping and handling
Check the sites security
Check the sites privacy
Make sure that they only take Paypal
Comparison Shopping is..
the practice of comparing the price and characteristics of good and services from different vendors before buying
the practice of shopping online regardless of the price and characteristics of good and services from different vendors before buying
the practice of obtaining the price and characteristics of good and services from different vendors to make a list
Advantages of shopping locally.
Check all that apply
Easier returns
saves money always
Contributing to local economy
See and touch the item before buying
What is the primary benefit of using a credit card responsibly?
Accumulating debt
Building a good credit history
Avoiding the need for a bank account
Earning unlimited cash back on purchases
The basic concept of credit is:
Savings
Pay now, buy later
Something only people without high paying jobs need
Buy now, pay later
What is interest?
A hobby or something you like to do
Money that you pay to borrow money or earn for saving money
A new video game
A type of food
Imagine you've been using your credit card for both necessary purchases and occasional splurges. Why would aiming to keep a low balance on this card be a smart financial move?
It means you pay less interest
It improves your credit utilization ratio, which can boost your credit score
It increases the amount of credit available to you
It has no impact on your credit score
When Kingston applies for a personal loan, the loan officer will assess his credit worthiness by checking:
Credit Report and Credit History
GPA and Transcripts
Parents Income and Net Worth
All answers are correct
Assume that you pay the balance in full in your credit card statement, therefore you will not pay any interest
Credit card companies will allow you to get cashback at a higher interst rate and fees
Some companies will allow you to go over-the-limit on your credit card but they will charge you extra fees .
Mario has a credit card with two charges $125.00 and $200.00 if he makes the minimum payment, he will be paying interest on what amount?
$325
$200
$125
If you use your credit card for online shopping, then you are increasing protection on your transaction.
