#1
Which of the following is typically NOT included in a credit card statement?
Total credit limit
ExplanationTotal credit limit is not usually mentioned on a credit card statement, as it pertains to the overall account terms.
#2
What does APR stand for on a credit card statement?
Annual Percentage Rate
ExplanationAPR represents the Annual Percentage Rate, indicating the cost of borrowing on the credit card.
#3
Which of the following is NOT a common fee found on credit card statements?
Direct deposit fee
ExplanationDirect deposit fees are not typically associated with credit card statements; common fees include annual fees, late fees, and interest.
#4
Which of the following can help improve your credit score?
Paying bills on time
ExplanationTimely bill payments positively impact credit scores, reflecting responsible financial behavior.
#5
What does 'Minimum Payment Due' represent on a credit card statement?
The least amount you can pay to avoid late fees
ExplanationMinimum Payment Due is the lowest payment to prevent late fees; paying more reduces interest costs.
#6
What does the 'Available Credit' section on a credit card statement represent?
The total credit limit minus the current balance and pending transactions
ExplanationAvailable Credit is the remaining borrowing capacity, calculated as the total limit minus current balances and pending transactions.
#7
What is the 'grace period' on a credit card?
The period during which no interest is charged on new purchases
ExplanationThe grace period is a timeframe where no interest accrues on new charges if the balance is paid in full.
#8
What is the 'credit utilization ratio'?
The percentage of available credit being used
ExplanationCredit utilization ratio is the proportion of used credit to the total available credit, influencing credit scores.