U22 Credit Card Quiz

12 Questions | By Gte-u22 | Updated: Mar 21, 2022 | Attempts: 65

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1.
- A.
  
  Convenience - no need to carry cash around
- B.
  
  Fraud protection - some credit cards offer fraud protection, and if fraud does occur it will not affect your cash / checking account
- C.
  
  It's free money, you never have to pay it back.
- D.
  
  Building up your credit to purchase big ticket items in the future
- E.
  
  Rewards - some credit cards offer cash back rewards or gift cards based on your purchases
Correct Answer(s)
A. Convenience - no need to carry cash around
B. Fraud protection - some credit cards offer fraud protection, and if fraud does occur it will not affect your cash / checking account
D. Building up your credit to purchase big ticket items in the future
E. Rewards - some credit cards offer cash back rewards or gift cards based on your purchases
2.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
One late payment can negatively impact your credit score.

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3.
- A.
  
  House / Condo
- B.
  
  Cell phone
- C.
  
  Car / Truck
- D.
  
  Boat
- E.
  
  Mp3's
Correct Answer(s)
A. House / Condo
C. Car / Truck
D. Boat
4.
- A.
  
  Mark your payment due date on a calendar
- B.
  
  Enroll in bill pay for your checking account so you can set up automatic payments each month, and sign up to receive electronic statements for your credit card bills.
- C.
  
  Write yourself a reminder on a piece of paper that can easily become lost
Correct Answer(s)
A. Mark your payment due date on a calendar
B. Enroll in bill pay for your checking account so you can set up automatic payments each month, and sign up to receive electronic statements for your credit card bills.
5.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
By starting out responsibly with your first credit card, you will be more likely to have good credit habits with more than one credit card and other purchases such as cars, houses etc.

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6.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Going over your credit limit not only results in fees from your credit card company but having maxed out cards can bring your FICO score down even if you are making the minimum payments. Your FICO score is important to qualify for financing on big purchase items.

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7.
- A.
  
  50%
- B.
  
  40%
- C.
  
  30%
- D.
  
  25%
Correct Answer
D. 25%

Explanation
Staying below 25% of your credit limit on a card is one of the ways you can increase your FICO credit score.

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8.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Most of your credit score is not only composed of how well you have handled your credit limits, but the length of time your accounts have been open. Even if your first card has a low limit, keep it open and try requesting an increase on your credit limit for that card.

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9.
- A.
  
  3 months
- B.
  
  1 year
- C.
  
  3 years
- D.
  
  6 years
Correct Answer
D. 6 years

Explanation
With all the interest, and minimum payments being so small you should make more than the minimum payments even if the balance is small. If you can only afford the minimum payments from a purchase, you probably should not even make the purchase on your credit card at all.

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10.
- A.
  
  Up to 1 year
- B.
  
  Up to 3 years
- C.
  
  Up to 5 years
- D.
  
  Up to 7 years
Correct Answer
D. Up to 7 years

Explanation
It can take up to 7 years for a late payment to be removed from your credit report. Plus, each late payment may lower your FICO score.

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11.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
You want to use your cards that have a 0 balance at least once every six months, if you do not they may become inactive and you want to keep accounts open that are in good standing. Don't be afraid to use the credit you have, just use it wisely!

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12.

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Current Version
Mar 21, 2022

Quiz Edited by
ProProfs Editorial Team
Apr 21, 2009

Quiz Created by
Gte-u22

U22 Credit Card Quiz

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