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1.
If the annual percentage rate on your credit card is 18%, you will pay 18% interest on each months balance.
False. The APR refers to the interest rate for the whole year. For this month, it would be only 1/12 of that, which would be 1.5%.
2.
What happens to the promotional APR on a credit card if you make a late payment while it is in force?
The promotion may end or continue. The company has the right to end the promotion and raise your rate, but whether it does so will be spelled out in the card agreement.
3.
A credit card that requires you to deposit money as collateral is called _______.
A secured card. The money you deposit acts as its security in the event that you default on it.
4.
If you open up a joint credit card account with someone, who is responsible for paying on the balance?
Both of you. Per the agreement with the card company, you both are responsible, even if only one of you makes the actual payments.
5.
For credit card users who report their card lost or stolen within 30 days of when they discover the loss or theft, what is their liability for any unauthorized charges likely to be?
Not responsible for any charges over $50 after notifying the bank. The key here is notifying the card issuer within a reasonable time of discovering the loss or theft, usually 30 days.
6.
What is the name for the credit card fee that is charged to you when you take money out of your card?
Cash advance fee. This fee is charged for cash advances made on your card.
7.
Your credit card company must deliver your bill at least how many days in advance?
21. This new threshold allows you a longer grace period.