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Test your knowledge
Choose wisely. There is only one correct answer to each question.
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Review your answers below to learn more.
1.
If you have bad credit and receive a credit card offer tailored to those with bad credit, what can you expect the interest rate to be like?
Choose wisely. There is only one correct answer.
Very high
Very low
Comparable to the industry average
None of the above
Very high. Because you are deemed a risk, your interest rate would be quite high.
2.
It is possible to use a credit card to earn more than you pay on it.
Choose wisely. There is only one correct answer.
True
False
True. You can earn rewards while paying your balance in full each month and avoiding fees.
3.
What is the name for the credit card fee that is charged to you when you take money out of your card?
Choose wisely. There is only one correct answer.
Balance transfer fee
Overlimit fee
Currency fee
Cash advance fee
Cash advance fee. This fee is charged for cash advances made on your card.
4.
Which of the following is probably the wisest use of credit?
Choose wisely. There is only one correct answer.
If you can buy something with cash, use credit instead.
Pay off higher-interest loans before lower-interest loans.
Make minimum payments each month.
Consolidate multiple lower interest loans into a single loan, even at a slightly higher rate.
Pay off higher-interest loans before lower-interest loans.
5.
Which of the following is the largest part of your FICO score?
Choose wisely. There is only one correct answer.
Amount owed
New credit
Payment history
Types of credit in use
Payment history. Your payment history carries more weight than any other measure.
6.
An example of revolving credit is _______.
Choose wisely. There is only one correct answer.
An automobile loan
A credit card agreement
A mortgage agreement
All of the above
A credit card agreement. Credit card agreements are an example of revolving credit.
7.
During what hours does the law allow debt collection agencies to call you?
Choose wisely. There is only one correct answer.
Collection agencies may call any time before midnight, but only once per day.
Collection agencies may call only at reasonable times.
Collection agencies may call between 9 a.m. and 5 p.m. local time.
Collection agencies may call only at reasonable times. The law says that calls before 8 a.m. or after 9 p.m. are unreasonable.
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