Credit And Credit Cards Pre-test

24 Questions | By Phbhenry | Updated: Mar 22, 2022 | Attempts: 3706

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Questions and Answers

1.

Most credit cards charge you interest even if you pay your balance in full each month.
- A.
  
  True
- B.
  
  False
2.

Credit card companies don't like to give credit cards to people in their late teens and early twenties.
- A.
  
  True
- B.
  
  False
3.

Your credit rating may be checked when you try to rent an apartment.
- A.
  
  True
- B.
  
  False
4.

A "store credit card" is a credit card that can only be used at one company's store.
- A.
  
  True
- B.
  
  False
5.

Your "credit line" is the maximum balance the credit card company will allow you to have.
- A.
  
  True
- B.
  
  False
6.

It is not a good idea to pay your balance in full each month because this will upset the credit card company.
- A.
  
  True
- B.
  
  False
7.

All credit cards have an annual fee that you must pay to the credit card company.
- A.
  
  True
- B.
  
  False
8.

Credit card companies can charge you a late fee even if you are only a couple of days late.
- A.
  
  True
- B.
  
  False
9.

Credit cards can only be used to buy things. They cannot be used to obtain cash.
- A.
  
  True
- B.
  
  False
10.

If you fall behind on your credit card payments, the credit card company is not allowed to report this to anyone. This is confidential information.
- A.
  
  True
- B.
  
  False
11.

When applying for a new job, your potential new employer can check your credit file with your permission.
- A.
  
  True
- B.
  
  False
12.

It is best to close all credit card accounts and deal only in cash to improve your credit score.
- A.
  
  True
- B.
  
  False
13.

Insurance companies can determine what rates you will pay for car insurance based on your credit score.
- A.
  
  True
- B.
  
  False
14.

Having a low credit score is a good thing.
- A.
  
  True
- B.
  
  False
15.

Interest rates you pay on your home loan are based upon your credit score.
- A.
  
  True
- B.
  
  False
16.

If you have filed bankruptcy, that information remains in your credit file for 10 years.
- A.
  
  True
- B.
  
  False
17.

Credit information that is collected for your credit report can be obtained from stores where you have credit accounts, your bank or credit union, or other businesses where you have accounts.
- A.
  
  True
- B.
  
  False
18.

Opening several new credit accounts within one month will improve your credit score as that shows that you are creditworthy.
- A.
  
  True
- B.
  
  False
19.

All credit cards
- A.
  
  Have the same credit limit.
- B.
  
  Must be used each month or they become inactive.
- C.
  
  Have an annual fee.
- D.
  
  None of the above.
20.

A credit report
- A.
  
  Is produced monthly by the federal government.
- B.
  
  Is changed only once a year.
- C.
  
  Is a financial report card.
- D.
  
  Is usually only of interest to individuals who plan to purchase a house.
21.

When you use a credit card...
- A.
  
  You are withdrawing money from savings.
- B.
  
  You are borrowing money from checking.
- C.
  
  Your bank is loaning you money.
- D.
  
  None of the above.
22.

Which of the following statements are true?
- A.
  
  A credit card is required if you want to establish credit.
- B.
  
  All bank credit cards are the same.
- C.
  
  Credit cards are a privilege.
- D.
  
  You pay a fee every time you use a credit card.
23.

When you have a credit card...
- A.
  
  You can buy what you want, as long as you can afford the card's minimum monthly payment.
- B.
  
  You will have a better credit score than if you do not have a credit card.
- C.
  
  You cannot charge over your credit limit.
- D.
  
  None of the above.