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Avoid Credit Trap 2

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

What is one of the rules for using your credit card?

a)

Always use your grace period

b)

Annual Percentage Rate

c)

Do not break the Golden Rule

d)

Use your card twice a month

2.

This is a credit card that has an asset (cash) deposited into an account to secure the loan. Good introductory step to build your credit.

a)

authorized user

b)

credit card account

c)

debit card account

d)

secured credit card

3.

This is the interest rate the credit company will charge you on a daily basis, 1 day or the APR divided by 365.

a)

Grace period

b)

annual fee

c)

Daily rate

d)

Minimum Amount Due

4.

This is if you missed payments for six months, the credit company will write off your debt as uncollectable and negatively impacts your credit score.

a)

Grace period

b)

Annual Percentage Rate

c)

charged off

d)

Cash advance

5.

What does M.A.D. stand for?

a)

Moving Annual Dividends

b)

Minimum Amount Done

c)

Minimum Amount Dividends

d)

Minimum Amount Due

6.

This is the lowest amount the credit card company will allow each month for you to pay off.

a)

Minimum Amount Due

b)

Electronic Funds Transfer

c)

Credit trap

d)

Credit Fee

7.

This is a type of loan without an underlying asset.

a)

Secured loan

b)

Debit card

c)

Credit card

d)

Unsecured loan

8.

What is a tomorrow account?

a)

Savings account

b)

Money market account

c)

Certificate of Deposit

d)

Checking account

9.

When you make a payment with a credit card, who is being contacted?

a)

Your checking account

b)

Your bank account

c)

Your credit account

d)

Your savings account

10.

This is the interest rate the credit company will charge you on a yearly basis.

(a)