Test your knowledge

Choose wisely. There is only one correct answer to each question.

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1.
Which of the following is NOT a good reason to have a credit card?
Choose wisely. There is only one correct answer.
To pay for daily expenses. Daily expenses are best paid for with cash.
2.
How long can a bankruptcy stay on your credit report?
Choose wisely. There is only one correct answer.
Seven or 10 years, depending on the type of bankruptcy. At present, they can stay this long.
3.
If you only qualify for a card with high interest rates and a high annual fee, you will almost invariably be stuck with those unfavorable terms forever.
Choose wisely. There is only one correct answer.
False. If you use your high-rate, high-fee card responsibly, after several months you can apply for a card with better terms.
4.
Credit reports naturally self-correct any errors in your payment history.
Choose wisely. There is only one correct answer.
False. Unfortunately, it is up to you to be vigilant and correct errors.
5.
If you know you are going to make a credit card payment late, talking with the credit card company will not do you any good.
Choose wisely. There is only one correct answer.
False. Though it's not guaranteed to, the company might extend your due date or waive the late fee for you.