Are You Credit Card Savvy?

Question 1 /12
1. What is a “grace period” on a credit card?(Required)
- A. The time during which you pray very hard you will have the money to pay your balance.
- B. The time between the credit card’s due date and the date you are reported late to the three major credit bureaus.
- C. The number of days after making a purchase on your credit card before that amount is subject to interest charges.
- D. The length of time between billing due dates on your credit card, during which no interest charges accrue.
Question 2 /12
2. Credit card interest is based on your ADB. What does ADB stand for?(Required)
- A. Average Deficit Balance
- B. Absolute Debt Balance
- C. Average Daily Balance
- D. Always Dead Broke
Question 3 /12
3. Which statement about credit scoring is true?(Required)
- A. Using your debit card can impact your credit score if you select “credit” when paying with it.
- B. Paying for things with cash directly impacts your credit score.
- C. Using a prepaid value card can impact your credit score.
- D. Using your credit card can impact your credit score.
Question 4 /12
4. What is the single most important way to help your credit score (35 percent weight).(Required)
- A. Paying only the minimum payment each month.
- B. Paying more than the minimum monthly payment.
- C. Paying your bill as soon as you receive it.
- D. Paying your bill (in part or in full) on time.
Question 5 /12
5. Which of the following statements about your credit card balances is true?(Required)
- A. Your minimum payment amounts won’t change as your balance changes.
- B. A growing credit card balance is fine as long as you stay below 50 percent of your credit limit.
- C. Charging only small amounts and paying them off doesn’t help your credit score.
- D. Paying down balances or paying in full drives 30 percent of your credit score.
Question 6 /12
6. You paid for your tickets to see Hailee Steinfeld on your new credit card and don’t have enough money in the bank to pay your bill in full by the due date. What should you do?(Required)
- A. Wait until you can pay it in full.
- B. Just pay the minimum payment amount until the tickets are paid for.
- C. Pay as much as you can and pay it before the due date.
- D. Pay the minimum amount as soon as you receive the bill to reset the grace period.
Question 7 /12
7. Which statement about minimum monthly payments is NOT true?
- A. Making minimum payments is best for improving your credit score in the short-term.
- B. Paying only the minimum payment costs you many times more in interest than what you charged to begin with.
- C. Banks view consistent minimum payments as a red flag that you are in danger of default.
- D. Banks now have to disclose to you how long it will take to pay off your balance by paying only the monthly minimum amount.
Question 8 /12
8. What is a secured credit card?(Required)
- A. A credit card for low-credit-score consumers — it requires a security deposit as collateral against non payment.
- B. A credit card requiring a parent or other responsible adult as cosigner on the account.
- C. A credit card with a security chip and additional security features for online purchases.
- D. A credit card that requires the use of two-factor authentication.
Question 9 /12
9. What is true about credit cards that offer perks like cash back or points?(Required)
- A. You should avoid all credit cards with perks.
- B. All credit cards offer perks.
- C. Some credit cards offer perks for no annual fee.
- D. Credit card perks require an additional credit score approval.
Question 10 /12
10. If Selena Gomez is on tour and forgets to pay her credit card on time, what will she most likely be charged the following month?(Required)
- A. No fees if she fires the person she expected to pay this for her.
- B. Interest on all new charges — the grace period does not apply when payments are late.
- C. A late fee but no interest if she pays in full.
- D. Interest on the average daily balance, plus a late fee.
Question 11 /12
11. Why do some stores have a minimum purchase amount in order to use your debit or credit card?(Required)
- A. Because it is easier to take cash.
- B. Because they need a computer and other equipment to accept a credit or debit card.
- C. Because they have to pay fees for the credit and debit transactions.
- D. Because they might not get paid if you don’t pay your credit card bill.
Question 12 /12
12. When you use your credit card, what other organizations — besides the merchant — also get paid for the transaction?(Required)
- A. The merchant’s processor and the credit card company.
- B. The bank that issued the card to you, the merchant’s processor, and the credit card company.
- C. The bank that issued the card to you and the merchant’s processor.
- D. The bank that issued the card to you and the credit card company.

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