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Credit Cards and Student Loans

Total questions: 17

Worksheet time: 10mins

Name
Class
Date
1.

What is the main risk of only making the minimum repayment on a credit card?

a)

You get cash rewards

b)

Your balance reduces quickly

c)

You pay more interest over time

d)

Your credit score improves

2.

What does "interest-free period" on a credit card mean?

a)

You won’t be charged interest if you pay in full by due date

b)

You never pay interest

c)

You pay less tax

d)

The bank pays your bills

3.

Which of these is a consequence of missing multiple credit card payments?

a)

You win a prize

b)

Your credit limit increases

c)

Your credit score goes down

d)

You earn reward points

4.

What is the typical interest rate on credit cards in NZ?

a)

2–5%

b)

10–12%

c)

18–25%

d)

30–35%

5.

Which of the following is a smart use of a credit card?

a)

Buying things you can’t afford

b)

Paying off the full balance every month

c)

Ignoring statements

d)

Using it for every small purchase

6.

What is a credit limit?

a)

The amount you earn each week

b)

The amount of interest you pay

c)

The maximum amount you can borrow on your credit card

d)

The total cost of your student loan

7.

What happens if you pay your credit card bill late?

a)

You get a bonus

b)

You avoid interest

c)

You may be charged late fees

d)

Your debt disappears

8.

Who manages student loans in New Zealand?

a)

NZQA

b)

Ministry of Education

c)

StudyLink

d)

MSD

9.

When do most NZ students start repaying their student loan?

a)

While studying

b)

When they turn 25

c)

When they earn over the threshold

d)

Immediately after borrowing

10.

What is the current income threshold for repaying a student loan in NZ (as of 2024/25)?

a)

$14,000

b)

$21,268

c)

$50,000

d)

$100,000

11.

Are student loans in NZ interest-free?

a)

No

b)
  • Only for some subjects

c)
  • Yes, if you live in NZ

d)
  • Only if you get top grades

12.

How often do you need to apply for your student loan and allowance?

a)
  • Once for your whole degree

b)
  • Every year

c)
  • Every semester

d)
  • Every time you move house

13.

What’s a good reason to borrow only what you need in a student loan?

a)

You don’t want to look greedy

b)

You’ll get a reward

c)

You’ll have less to pay back later

d)

The government will cancel your loan

14.

How much can you borrow for course related costs each year with your Student Loan?

(a)  

15.

How much can you borrow for Student Loan living costs each week?

a)

$323.43

b)

$383.43

c)

$423.43

d)

$233.43

16.

How long can you live overseas before your student loan starts charging interest?

a)

6 months

b)

6 weeks

c)

12 months

d)

18 month

17.

(a)   is the cost of borrowing money, shown as a percentage.