Module 119-120 Review Part 2 Question Preview (ID: 34424)

a) if you pay less than the minimum payment, your interest rate may be raised to a higher APR

b) it is a good idea to only pay the minimum payment so that you can get a better credit score

c) the minimum payment warning on your credit card bill tells you long will it will take to pay off your bill paying minimum amt

d) if you pay the minimum payment, you will most likely carry a balance and be charged interest.

a) a cash advance is when you pay in advance toward your credit card bill

b) when you use your credit card to take out cash advance, you are charged interest

c) a cash advance with your credit card is like taking out a loan

d) the interest rate on cash advance is generally higher than the interest rate charged on

a) The APR takes into account when the interest rate is compounded and the timing of your payments

b) The APR on your credit card can change if you are late paying your bill by one day.

c) the APR on your credit card is the same for cash advances and purchases

d) a credit card may have one APR for the first months that you have a card and then raise the APR after this introductory pd.

a) Paying your bill as soon as you get is a good idea. The interest charged when late is much higher than savings interest

b) if you are having trouble paying your bill, you should contact the credit card co to discuss changing the terms of payment

c) when you are late with your bill, you are only charged interest for the time between when the payment was due and received

d) being timely in paying your credit card bill improves your credit rating.

a) as long as you have a balance for two consecutive billing periods, you will be charged interest.

b) when you use your card to take out a cash advance, you always are charged interest

c) interest charges are required by law never to exceed the amount of the original charge

d) you can avoid interest charges if you always pay off your bill in full and on

a) your account balance can be viewed online if you sign up for online access with your credit card company

b) all transactions such as payments, cash advances, and purchases can be seen online

c) you should share your PIN and account number with friends so that they can remind you to check your account.

d) online viewing of your account is one way to catch fraudulent use of your credit card.

a) you can be penalized if the credit card company receives your payment after the payment due date.

b) when the credit company changes your APR because of a penalty, they are not required to restore the APR to the previous rate

c) you can be penalized if you pay less than the minimum payment

d) your account agreement statement is like a contract, which means the credit card company cannot change the APR after you sign

a) if someone other than yourself is using your credit card without your permission, it is not considered fraud

b) you should check statement online to see if there are any charges you do not recognize, as these charges could be fraudulent.

c) it is a good idea to tell your credit card company if you are making a purchase out of town or above your usual spending leve

d) credit card companies want to avoid fraud so they not have to pay for fraudulent charges.

a) You can transfer the balance you owe on one credit card to another credit card.

b) If you transfer a balance from one card to another and then do not pay off the balance, you will be charged interest.

c) Balance transfers are only penalized on debit cards.

d) Balance transfers are typically charged a lower interest rate than cash advances.

a) “NO fees cards” refer to cards that do not have annual fees

b) Annual fee are charged whether you use your credit card or do not use your credit card.

c) cash advance fees usually have a minimum amount and then go up as a % of the cash you take out as an advance

d) late fees are less if you are only a few days late and greater if you are more than a week late.