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Credit Cards

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

A ____ __ ______ is a set amount of money that you are allowed to borrow. 

(a)  

2.
  • This is money that you have to pay every year for using the credit card. It could be $0, or it could be several hundred dollars.

a)

Annual fee

b)

Annual percentage rate

c)

Interest

d)

Bill

3.

The amount of interest that is charged on a credit card balance.

a)

Late fee

b)

Mortgage

c)

Annual percentage rate (APR)

d)

Annual fee

4.

You need to be 18 or older to apply for any type of credit card and have a job or income.

a)

True

b)

False

5.

A fee that you have to pay when you withdraw money with the credit card at an ATM or bank. It is usually around 3% of the money withdrawn plus other fees.

a)

APR

b)

Late fee

c)

Cash advance fee

d)

Foreign transaction fee

6.

This is a charge for each time you go over your credit card limit. For example, if you were approved for a credit line of a $1000 for your credit card, and you go over this limit by $1.

a)

Cash advance fee

b)

Over-the-limit fee

c)

Interest

d)

Foreign transaction fee

7.
  • The better you credit rating the larger amount you will be allowed to borrow (the higher your credit line or limit).

a)

True

b)

False

8.

It is a good idea to pay only the minimum amount due on your credit card bill.

a)

True

b)

False

9.

A loan is revolving, and a credit card is not.

a)

True

b)

False

10.

The average credit card holder in the United States has (a)   credit cards.