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Basics Beginner: Introduction to Credit Cards

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1.
It is possible for a credit card to use several annual percentage rates.
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True. A credit card can have a separate rate for purchases and a separate rate for balance transfers, for example.
2.
Your credit card company must deliver your bill at least how many days in advance?
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21. This new threshold allows you a longer grace period.
3.
Interest on credit card balances is calculated by a variety of methods. With which method does a credit card add up each days balance in the billing cycle and average all of them?
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Average daily balance. This method averages each days balance.
4.
What is the name for the credit card fee that is charged to you when you take money out of your card?
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Cash advance fee. This fee is charged for cash advances made on your card.
5.
Co-branded credit cards may be used at locations other than the ones that co-brand them.
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True. But if you use them with the businesses they are named with, you can get extra rewards.
6.
If you open up a joint credit card account with someone, who is responsible for paying on the balance?
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Both of you. Per the agreement with the card company, you both are responsible, even if only one of you makes the actual payments.
7.
When considering the potential drawbacks of credit card use, one of the biggest concerns is that you are liable for unlimited amounts of charges incurred when a card is lost or stolen.
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False. Federal laws and bank policies limit your liability for unauthorized charges, as long as you notify the card issuer in a timely fashion if your card is lost or stolen.