Are you Credit Card Savvy?

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Which of the following is a disadvantage of having a credit card?

Annual fee (correct)
Late fee
Cash advance fee
Foreign transaction fee

What is the main cause of credit card debt?

Irresponsible spending habits (correct)
High interest rates
Foreign transaction fees
Late payments

What is one advantage of having a credit card?

Lost or stolen safeguards (correct)
Cash advance fees
Late fees
High interest rates

Which of the following is a reason why people use credit cards instead of cash?

All of the above (D) Signup and view all the answers

What happens when you open one credit card and start making purchases?

You receive multiple offers to open other credit cards (A) Signup and view all the answers

What is the average amount of credit card debt owed by the average household?

$16,000 (B) Signup and view all the answers

Which of the following is a benefit of being responsible with your credit card?

You can establish and build positive credit (B) Signup and view all the answers

What should you do in order to make perks and reward programs worth it?

Pay off your credit card balance each month (B) Signup and view all the answers

What do many credit card companies offer based on the amount of purchases you make?

Benefit programs (C) Signup and view all the answers

What is important to do if you want to build positive credit with your credit card?

Be responsible with your credit card (D) Signup and view all the answers

True or false: Being responsible with your credit card can help you establish and build positive credit for the first time.

True (A) Signup and view all the answers

True or false: Credit card companies offer benefit programs based on the amount of purchases you make.

True (A) Signup and view all the answers

True or false: Perks and reward programs are only worth it if you pay off your credit card balance each month.

True (A) Signup and view all the answers

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 Signup and view all the answers

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 Signup and view all the answers

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 Signup and view all the answers