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Basics Beginner: Introduction to Credit Cards

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1.
After the promotional APR on a credit card ends, the interest rate switches to the _______ APR.
Choose wisely. There is only one correct answer.
Regular. The regular APR is for regular use.
2.
When you are reporting a lost credit card, the bank or other issuer must be notified in writing.
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True. The law now provides specific guidelines for providing written notice. Failure to adhere to these requirements will result in increased liability for any unauthorized use of your lost or stolen card.
3.
Why might a merchant offer you a discount if you buy its product with cash instead of credit?
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If you pay cash, the merchant wont need to pay a commission on it. But using a credit card results in a commission to the merchant, which is passed on to you through higher prices.
4.
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?
Choose wisely. There is only one correct answer.
Average daily balance. This method averages each days balance.
5.
A credit card that requires you to deposit money as collateral is called _______.
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A secured card. The money you deposit acts as its security in the event that you default on it.
6.
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.
7.
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.