16 Questions
Which of the following is a disadvantage of having a credit card?
Annual fee
What is the main cause of credit card debt?
Irresponsible spending habits
What is one advantage of having a credit card?
Lost or stolen safeguards
Which of the following is a reason why people use credit cards instead of cash?
All of the above
What happens when you open one credit card and start making purchases?
You receive multiple offers to open other credit cards
What is the average amount of credit card debt owed by the average household?
$16,000
Which of the following is a benefit of being responsible with your credit card?
You can establish and build positive credit
What should you do in order to make perks and reward programs worth it?
Pay off your credit card balance each month
What do many credit card companies offer based on the amount of purchases you make?
Benefit programs
What is important to do if you want to build positive credit with your credit card?
Be responsible with your credit card
True or false: Being responsible with your credit card can help you establish and build positive credit for the first time.
True
True or false: Credit card companies offer benefit programs based on the amount of purchases you make.
True
True or false: Perks and reward programs are only worth it if you pay off your credit card balance each month.
True
Match the following statements with their corresponding implications:
Build Positive Credit = Being responsible with your credit card helps establish and build positive credit Perks and Rewards = Credit card companies offer benefits based on the amount of purchases you make Pay off credit card balance each month = Makes perks and reward programs worth it
Match the following terms with their definitions:
Build Positive Credit = Establishing and improving credit score by being responsible with your credit card Perks and Rewards = Benefit programs offered by credit card companies based on the amount of purchases Pay off credit card balance each month = Action needed to make perks and reward programs worth it
Match the following actions with their outcomes:
Being responsible with your credit card = Helps establish and build positive credit Making a lot of purchases with your credit card = Can earn you perks and rewards Paying off your credit card balance each month = Ensures perks and reward programs are worth it
Test your knowledge on the dangers of credit cards with this informative quiz. Learn about the risks associated with credit card use, such as overspending, high interest rates, and identity theft. Discover how to protect yourself and make smart financial decisions when it comes to credit cards.
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