Understanding Credit Card Management and Responsibility Quiz

Test your knowledge on credit card management, APR, fees & more. Learn responsible credit card usage. Take the quiz now!

Practice Learn Test

Which of the following is not a factor to consider when choosing a credit card?

Interest rates

Rewards programs

Card color

Annual fees

What is the recommended action if you suspect fraudulent activity on your credit card?

Wait and monitor for a few weeks

Notify your credit card issuer immediately

Ignore it, as it will resolve itself

Post about it on social media

Which of the following is a potential consequence of missing credit card payments?

Improved credit score

Lower interest rates

Late fees and increased interest rates

Increased credit limit

What is the primary purpose of a credit card's CVV code?

To track your spending habits

To verify that the card is legitimate and not stolen

To access your credit limit

To apply for cash advances

Which of the following actions can help improve your credit score?

Closing old credit card accounts

Making only the minimum payment on your credit cards

Applying for multiple credit cards at once

Paying bills on time and keeping credit card balances low

What is the purpose of the 'due date' on a credit card statement?

The date by which you must make a payment to avoid late fees

The date by which you must apply for a credit limit increase

The date by which you must cancel your credit card if not in use

The date by which you must redeem your credit card rewards

What does APR stand for in relation to credit cards?

Annual Payment Rate

Average Purchase Ratio

Annual Percentage Rate

Average Points Redemption

What is the 'minimum payment' on a credit card statement?

The smallest amount of money you must pay by the due date

The maximum amount you can pay each month

A penalty fee for late payments

A fixed amount required to avoid interest charges

What does 'balance transfer' mean in the context of credit cards?

Transferring your credit balance to another person

Moving debt from one credit card to another with lower interest rates

Switching to a different credit card company

Converting your credit balance into cash

#10

What is the purpose of a 'grace period' on a credit card?

A period during which you can make purchases without accruing interest

A time frame for paying off debts without penalties

A period where you can delay making payments with no consequences

A period for lenders to review your credit history

#11

What is the main difference between a credit card and a debit card?

Credit cards require a PIN for transactions, while debit cards do not.

Credit cards are linked directly to your bank account, while debit cards are not.

Credit cards allow you to borrow money from the issuer, while debit cards use funds directly from your bank account.

Credit cards have higher transaction fees compared to debit cards.

#12

What is a 'cash advance' on a credit card?

Withdrawing cash from an ATM using your credit card

Transferring a credit card balance to another card

Receiving cash back rewards from your credit card issuer

Purchasing goods or services online using your credit card

#13

How does a credit card issuer determine your credit limit?

Based solely on your income

By considering your credit score, income, and debt level

By flipping a coin

By your astrological sign

#14

What is 'credit utilization ratio' in relation to credit cards?

The total amount of credit available to you

The percentage of available credit you're currently using

The number of credit cards you own

The amount of interest you've paid over time

#15

Which of the following statements about credit card interest is true?

Interest rates are fixed and never change

Interest is only charged on the principal amount borrowed

Interest rates are always lower on credit cards compared to loans

Interest compounds over time, meaning you pay interest on both the principal and any accrued interest