Practice: Credit cards and debt

6 questions on what you just watched. 4 right is a pass, nothing is timed, and your best score is kept in this browser only.

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Practice

6 questions. 4 right is a pass, and your best score is kept in this browser.

1. Paying only the minimum each month…Pays the card off in about a yearAvoids all interest chargesImproves your score faster than paying in fullKeeps the account current but stretches repayment over years

2. The grace period means…Interest is capped at 10%Late fees are waivedNo interest on purchases if you pay the statement balance by the due dateYou can skip a payment once a year

3. A cash advance…Is the same as a debit transactionStarts charging interest immediately and adds a feeIs free if you repay within 30 daysHas a lower rate than purchases

4. You have $500 extra and two balances: 29% and 12%. Where does it go?The 29% balanceSplit evenly between themThe 12% balanceInto savings while paying minimums

5. Your statement says $35 minimum and $780 statement balance. You have $780.Pay the $35 and keep the cashPay $390 now and the rest next monthPay nothing and let autopay handle the minimumPay the $780 by the due date and owe no interest

6. You are carrying a balance. Which habit makes payoff much harder?Checking the statement every monthSetting a reminder for the due dateCharging new purchases to the same cardPaying more than the minimum

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