Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
The more often you max out your credit card, the more likely the card will raise your credit limit for you.
False. Maxing out your card is bad for your credit rating. If you want to raise your credit limit, don't do that.
2.
When evaluating a credit card offer, why should you consider how the card's interest rate is calculated?
Different methods result in different charges. Based on when you incur charges and when you pay them off, the method used to calculate interest will differ.
3.
Which of the following organizations offer credit cards?
All of the above. There are thousands of banks, credit unions, and other organizations that offer credit cards.
4.
In credit card language, universal default means that _______.
If you make a late payment to a creditor, some other creditor can penalize you for it. When evaluating credit card offers, read the fine print to see if they do this, because not all cards do.
5.
When comparing credit cards, the annual percentage rate (APR) is more important if you don't pay your bill in full each month.
True. The APR is the interest rate you will pay on any balance outstanding on your credit card each month. A lower APR can result in substantial savings.