NEW
Font size
WorksheetsML Financial Literacy - Credit Cards
Total questions: 20
Worksheet time: 10mins
What is a credit card?
A card used to withdraw money from an ATM
A card used to make purchases by borrowing money from a bank or credit card company
A type of savings account
A card used to pay for only cash purchases
What does it mean to "charge" something to a credit card?
To pay the full amount in cash at the time of purchase
To borrow money from the credit card issuer to make a purchase
To deposit money into your bank account
To buy something online using your savings
What is the credit limit on a credit card?
The maximum amount you can spend on a credit card
The amount of money you have in your savings account
The minimum payment required each month
The annual interest rate on your card
What is the interest rate on a credit card called?
Premium
APR (Annual Percentage Rate)
Credit Limit
Monthly Payment
What is a minimum payment on a credit card?
The maximum amount you can pay each month
The lowest amount of money you must pay each month to avoid penalties
The amount of money required to open a credit card
The amount of money you can borrow on a credit card
What happens if you don’t pay your credit card bill on time?
You earn rewards points
You can be charged late fees and your interest rate may increase
You will get extra credit to spend
Your credit limit will be automatically increased
What is a credit card statement?
A report showing how much money is in your savings account
A report from the credit card company showing your charges, payments, and balance
A document you need to sign to get approved for a credit card
A bank loan agreement
What is a credit score?
A score given by your bank to show how much money you have
A number that represents how well you manage your credit and debts
A list of items you can buy with your credit card
The amount of money you earn each year
What is the purpose of a credit card rewards program?
To offer money back or points for purchases made with the card
To help you pay your bills
To give you a loan without interest
To increase your credit limit automatically
What is a cash advance on a credit card?
A loan from your bank to cover expenses
Withdrawing money from your credit card at an ATM or bank
The amount of money you save when using a credit card
A payment you make to the credit card company
What is the grace period on a credit card?
The time when you can buy anything without paying interest
A period during which you can pay your balance without being charged interest
The time you must wait before applying for a credit card
The time you have to increase your credit limit
What is the annual fee on a credit card?
A one-time fee to open the card
A monthly fee for using the card
A yearly fee charged for using the credit card
A fee for cash advances
What is the difference between a secured and unsecured credit card?
A secured card requires a deposit as collateral, while an unsecured card does not
A secured card has no fees, while an unsecured card does
An unsecured card is used for business, while a secured card is for personal use
A secured card has a higher credit limit than an unsecured card
What is a credit card balance?
The total amount of money you owe on the credit card
The total amount of money available to borrow
The minimum payment due for the month
The interest rate applied to your card
What is the purpose of a credit card's billing cycle?
To calculate the total interest charged on the card
To determine how much you have to pay every month
To track purchases made and payments received over a month
To calculate the cost of the card's rewards program
What is the risk of using credit cards irresponsibly?
You can earn rewards points faster
You may incur high-interest charges and damage your credit score
Your credit limit will increase automatically
You will get more discounts on your purchases
What is a credit card issuer?
A company that sets the minimum payments for credit cards
A bank or financial institution that offers credit cards
A store that accepts credit cards
A person who manages your credit card account
What does it mean to “max out” your credit card?
You spend all of your available credit limit
You make a payment that is higher than your balance
You earn all of your rewards points
You cancel your credit card
Why is it important to read the terms and conditions of a credit card?
To understand the fees, interest rates, and other important details about the card
To find out if the card will give you free gifts
To know the exact rewards for purchases
To see how long the credit card will last
What should you do if you lose your credit card?
Wait to see if someone returns it to you
Immediately report it to your credit card issuer to prevent unauthorized charges
Keep using it as usual
Cancel the card at the end of the month
