WorksheetsUnderstanding Credit Cards
Total questions: 5
Worksheet time: 23mins
1-10.
Answer the questions below after watching the video
What is a common misconception about credit cards?
They automatically improve your credit score
They are only for the wealthy
They are essentially free money
They are only used for online purchases
What is the primary function of a credit card?
To earn unlimited cashback
To borrow money from the bank
To make international transactions free
To borrow books from the library
What is a secured credit card?
A card for secured transactions only
A card secured with a password
A card that requires collateral
A card with unlimited credit
Why is it important to pay off your credit card each month?
To earn rewards points
To increase the credit limit
To keep the card active
To avoid late fees and interest
What is the risk of not understanding how credit cards work?
Missing out on rewards
Having too many cards to manage
Accumulating debt due to interest and fees
Not being able to use the card internationally
What can a good credit score help you with in the future?
Traveling for free
Getting a job
Buying a car or house with better interest rates
Winning the lottery
How can bad credit affect your ability to rent an apartment?
Landlords may ask for a co-signer
Landlords may deny your application
Landlords may require a higher deposit
All of the above
What should you do before applying for your first credit card?
Consult with a financial advisor
Discuss with friends and family about their experiences
Save a large sum of money
Travel abroad
Why is it important to have conversations about money and credit cards?
To brag about your credit score
To find the best shopping deals
To make informed financial decisions
To learn about investment opportunities
How do you avoid owing interest on your credit card purchases?
Pay your card in full each year.
Pay your card in full each month.
Make at least the minimum payment each month.
Don't make more than the maximum payment each month.
Use the Credit Card Disclosure to answer the following: What is the customary APR on purchases after the initial 12 months?
36.5%
27.357%
18.35%
5.65%
Amount you are borrowing is the ____________.
Principal
Interest
Term
Loan
Percent
