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1.
The term "revolving credit" refers to _______.
The fact that you can borrow from the credit limit over and over, within limit. As long as you stay within your limit, your credit use can "revolve."
2.
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?
Average daily balance. This method averages each days balance.
3.
A credit card issuer is allowed to increase the APR on a new card within the first year _______.
Only in certain circumstances. Certain circumstances, such as if the card agreement discloses up front that it is going to, are allowed.
4.
After the promotional APR on a credit card ends, the interest rate switches to the _______ APR.
Regular. The regular APR is for regular use.
5.
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.
6.
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.
7.
Co-branded credit cards may be used at locations other than the ones that co-brand them.
True. But if you use them with the businesses they are named with, you can get extra rewards.