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Module 2- Credit 101 - Section 2 Quiz

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What is a credit card?

a)

A card that holds your own money

b)

A way to get free stuff from the bank

c)

A tool that lets you borrow money to make purchases

d)

A special kind of debit card

2.

What happens if you don’t pay your credit card bill in full by the due date?

a)

Your credit limit increases

b)

You’re charged interest

c)

Your balance is erased

d)

You get more reward points

3.

What is a credit limit?

a)

The minimum amount you have to spend

b)

The total amount of money you earn

c)

The maximum amount you can borrow on a card

d)

The number of cards you’re allowed to have

4.

What’s the smart way to treat your credit card?

a)

Like free money

b)

Like cash—only spend what you can pay off

c)

Like a gift card

d)

Like a reward machine

5.

What’s one benefit of paying your full credit card balance each month?

a)

You earn more rewards

b)

You avoid paying interest

c)

Your credit limit resets

d)

You get a new card

6.

Why is it important to keep your credit usage under 30%?

a)

To avoid overspending

b)

To earn bonus points

c)

To raise your credit score

d)

Both A and C

7.

What should you do to avoid missing payments?

a)

Just try to remember the due date

b)

Only use the card once a month

c)

Set up autopay or calendar reminders

d)

Pay only the minimum due

8.

Which of the following is a good way to build credit at 18?

a)

Open 5 cards at once

b)

Get added as an authorized user on a parent’s card

c)

Share your PIN with a friend

d)

Wait until you’re 30

9.

What’s a safe credit card habit?

a)

Posting your card info online

b)

Sharing your security code with a best friend

c)

Shopping on “http” websites

d)

Reviewing your monthly statements

10.

Why can credit card rewards be risky?

a)

You have to use your whole credit limit

b)

They make people overspend

c)

Interest can cancel them out if you carry a balance

d)

Both B and C