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Credit Card Knowledge Quiz

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What are credit cards considered as?

a)

Free money

b)

Loans

c)

Gifts

d)

Investments

2.

What must you do to avoid paying interest on a credit card?

a)

Pay your bill on time

b)

Spend more than the limit

c)

Ignore the bill

d)

Use another card

3.

What does a credit score measure?

a)

Your income level

b)

How reliable a payer you are

c)

Your spending habits

d)

Your savings

4.

Why is having a good credit score important?

a)

So you can buy a car or a house

b)

To avoid taxes

c)

To get approved for loans at low interest rates

d)

To increase spending limits

5.

What is one thing to consider when getting a credit card?

a)

The color of the card

b)

Annual fee

c)

The bank's location

d)

The card's design

6.

What is required to become an authorized user on a family member's account?

a)

A high income

b)

Good credit

c)

A personal loan

d)

A business account

7.

What is a secured credit card?

a)

A card with no limit

b)

A card that requires a deposit to open

c)

A card with high interest rates

d)

A card for international use

8.

What does a student credit card usually have?

a)

Higher interest rates

b)

Lower Annual Percentage Rate

c)

No credit limit

d)

No fees

9.

What is the balance on a credit card?

a)

The amount you spend that month

b)

The total credit limit

c)

The interest rate

d)

The annual fee

10.

What do lenders use the deposit for in a secured credit card?

a)

To increase the credit limit

b)

To pay the balance

c)

To offer rewards

d)

To reduce interest rates

11.

What is one benefit of becoming an authorized user?

a)

Free travel points

b)

Helps build credit

c)

No need to pay bills

d)

Unlimited spending

12.

What do you need to provide when applying for a credit card?

a)

A family photo

b)

Social Security Number

c)

A letter of recommendation

d)

A passport

13.

What is a late fee?

a)

A reward for early payment

b)

A penalty for not paying on time

c)

A discount on purchases

d)

A bonus for high spending

14.

What is the purpose of a deposit in a secured credit card?

a)

To earn interest

b)

To act as a 'back-up' plan

c)

To increase the credit limit

d)

To avoid annual fees

15.

What is one reason to have a good credit score?

a)

To get a free credit card

b)

To get approved for an apartment

c)

To avoid paying taxes

d)

To receive cash back