stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Credit Cards & Financial Literacy Flashcards | StudBud
Explore
/
Credit Cards & Financial Literacy
Credit Cards & Financial Literacy
15 terms
·
StudBud Administration
·
22 plays
Imported from external platform
Flashcards
15 cards
F
Practice quiz
P
Host live
L
Questions
15
Answers
1
What is a common benefit of using a credit card responsibly?
Never having to pay for purchases.
The ability to spend unlimited money.
Free pizza every month.
Earning cash back or travel points.
2
What is the main difference between a credit card and a debit card?
Debit cards build credit faster than credit cards.
Debit cards charge interest every time you swipe.
Credit cards allow borrowing money, while debit cards use your own money.
Credit cards give you free money each month.
3
What is the best way to avoid credit card debt?
Ignore your credit card bill until the bank calls you.
Pay only the minimum amount required.
Close your eyes and hope it goes away.
Pay off your balance in full every month.
4
If your credit card is stolen, what should you do first?
Report it to your credit card company immediately.
Wait a few weeks to see if it turns up.
Try to track down the thief yourself.
Buy a lottery ticket and hope for the best.
5
What does “credit utilization” mean?
The total amount of free money the bank gives you.
The number of times you swipe your card per month.
The percentage of your credit limit you are using.
The number of stores that accept your credit card.
6
Why should you keep your credit utilization below 30%?
It helps maintain a good credit score.
Banks will close your account if you go over.
The government will lower your taxes.
You get a gold star from your bank.
7
Credit cards allow unlimited spending with no consequences.
True
False
8
What does APR stand for?
All Payments Required.
Average Payback Ratio.
Absolutely Perfect Refund.
Annual Percentage Rate.
9
What is a smart way to protect yourself from credit card fraud?
Share your credit card details with your best friend.
Write your PIN on the back of your card.
Post your credit card number online in case you forget it.
Monitor your transactions and set up alerts.
10
If you don’t pay your credit card bill in full, you won’t be charged any extra fees.
False
True
11
What happens if you miss a credit card payment?
Your credit card balance is erased.
Your interest rate automatically decreases.
Your credit score could go down, and you may be charged a late fee.
The bank rewards you with bonus points.
12
What is the best way to improve your credit score?
Max out your card and hope for the best.
Pay your bills on time.
Open multiple credit cards at once.
Never use a credit card.
13
Which of these is NOT a benefit of using credit cards wisely?
Unlimited free money from the bank.
Building a strong credit history.
Earning rewards like cash back and travel points.
Protection against fraud and unauthorized charges.
14
Why is compound interest dangerous for debt?
It makes your debt disappear overnight.
It applies only to savings accounts, not credit cards.
It turns your credit card into a money printer.
Interest is charged on previous interest, making debt grow faster.
15
Why is having a good credit score important?
It guarantees you will never have debt.
It makes you look impressive at social events.
It means the bank sends you free money every month.
It allows you to qualify for loans, apartments, and even jobs.
