Take This Credit Card Quiz To Save Money

1. Credit card issuers allow you to ask for increasing your credit limit.

True

False

Credit card issuers often provide the option for cardholders to request an increase in their credit limit. This allows individuals to have access to more credit, which can be beneficial for making larger purchases or managing unexpected expenses. The decision to grant the increase is typically based on factors such as the cardholder's credit history, income, and payment behavior. By increasing the credit limit, card issuers can potentially increase their customers' spending and usage of the credit card, which can result in higher interest charges and fees for the issuer.

Explanation

Credit card issuers often provide the option for cardholders to request an increase in their credit limit. This allows individuals to have access to more credit, which can be beneficial for making larger purchases or managing unexpected expenses. The decision to grant the increase is typically based on factors such as the cardholder's credit history, income, and payment behavior. By increasing the credit limit, card issuers can potentially increase their customers' spending and usage of the credit card, which can result in higher interest charges and fees for the issuer.

2. Credit card issuers make financial hardship plans available for the people struggling to make payments.

True

False

Credit card issuers often make financial hardship plans available to help individuals who are struggling to make their payments. These plans can include measures such as reduced interest rates, lower minimum payments, fee waivers, or alternative payment schedules. The availability and specifics of these hardship plans can vary by issuer and individual circumstances, but they are generally designed to help prevent defaults and maintain customer relationships.

Explanation

Credit card issuers often make financial hardship plans available to help individuals who are struggling to make their payments. These plans can include measures such as reduced interest rates, lower minimum payments, fee waivers, or alternative payment schedules. The availability and specifics of these hardship plans can vary by issuer and individual circumstances, but they are generally designed to help prevent defaults and maintain customer relationships.

3. Making credit card payments on-time will help you get loan, if required in future.

True

False

Making credit card payments on-time helps to build a positive credit history, which is important when applying for a loan in the future. Lenders typically consider an individual's credit history to assess their creditworthiness and determine the interest rates and loan terms. By consistently making on-time payments, it demonstrates responsible financial behavior and increases the likelihood of loan approval. Conversely, late or missed payments can negatively impact credit scores and make it more difficult to secure a loan. Therefore, making credit card payments on-time can indeed help in getting a loan if required in the future.

Explanation

Making credit card payments on-time helps to build a positive credit history, which is important when applying for a loan in the future. Lenders typically consider an individual's credit history to assess their creditworthiness and determine the interest rates and loan terms. By consistently making on-time payments, it demonstrates responsible financial behavior and increases the likelihood of loan approval. Conversely, late or missed payments can negatively impact credit scores and make it more difficult to secure a loan. Therefore, making credit card payments on-time can indeed help in getting a loan if required in the future.

4. Being a new credit card user, you are allowed to have unlimited credit limit.

True

False

As a new credit card user, it is highly unlikely that you would be allowed to have an unlimited credit limit. Credit limits are typically determined based on factors such as your credit history, income, and creditworthiness. Being a new user, you would have limited or lower credit limit until you establish a good credit history and prove your ability to manage credit responsibly. Therefore, the statement is false.

Explanation

As a new credit card user, it is highly unlikely that you would be allowed to have an unlimited credit limit. Credit limits are typically determined based on factors such as your credit history, income, and creditworthiness. Being a new user, you would have limited or lower credit limit until you establish a good credit history and prove your ability to manage credit responsibly. Therefore, the statement is false.

5. Moving the credit card debt to a card which has lower interest rate or a 0% rate will save you money in the long run.

True

False

Moving credit card debt to a card with a lower interest rate or a 0% rate can actually save you money in the long run. By transferring the debt to a card with a lower interest rate, you will be paying less in interest charges over time, which can result in significant savings. Additionally, if you transfer the debt to a card with a 0% rate, you can avoid paying any interest for a certain period of time, allowing you to pay off the debt more quickly and save even more money. Therefore, the statement is incorrect.

Explanation

Moving credit card debt to a card with a lower interest rate or a 0% rate can actually save you money in the long run. By transferring the debt to a card with a lower interest rate, you will be paying less in interest charges over time, which can result in significant savings. Additionally, if you transfer the debt to a card with a 0% rate, you can avoid paying any interest for a certain period of time, allowing you to pay off the debt more quickly and save even more money. Therefore, the statement is incorrect.

6. Credit card issuers allow you to ask for an interest rate that is lower.

True

False

Credit card issuers allow you to ask for a lower interest rate because they want to retain customers and encourage responsible borrowing. By offering a lower interest rate, they make it more attractive for customers to keep using their credit card and potentially pay off their balances faster. This can also help customers who may be struggling with high interest payments and allow them to save money in the long run. However, it is important to note that the decision to lower the interest rate ultimately lies with the credit card issuer and they may not always grant the request.

Explanation

Credit card issuers allow you to ask for a lower interest rate because they want to retain customers and encourage responsible borrowing. By offering a lower interest rate, they make it more attractive for customers to keep using their credit card and potentially pay off their balances faster. This can also help customers who may be struggling with high interest payments and allow them to save money in the long run. However, it is important to note that the decision to lower the interest rate ultimately lies with the credit card issuer and they may not always grant the request.

7. If you wish to switch to a different card provided by the same company — for example, to get a lower annual fee or some better rewards — you must ask the company to discontinue your existing original account and open a new one.

True

False

The statement is false because if you wish to switch to a different card provided by the same company, you do not need to ask the company to discontinue your existing original account and open a new one. Instead, you can simply request a card upgrade or switch, and the company will make the necessary changes to your existing account.

Explanation

The statement is false because if you wish to switch to a different card provided by the same company, you do not need to ask the company to discontinue your existing original account and open a new one. Instead, you can simply request a card upgrade or switch, and the company will make the necessary changes to your existing account.

8. Paying the minimum amount every month on a credit card allows you to pay down your debt quickly.

True

False

Paying only the minimum amount every month on a credit card does not allow you to pay down your debt quickly. In fact, it can prolong the time it takes to pay off the debt and result in paying more in interest over time. To pay down debt quickly, it is advisable to pay more than the minimum amount each month.

Explanation

Paying only the minimum amount every month on a credit card does not allow you to pay down your debt quickly. In fact, it can prolong the time it takes to pay off the debt and result in paying more in interest over time. To pay down debt quickly, it is advisable to pay more than the minimum amount each month.

9. Credit card issuers waive off late fees on payments.

True

False

Credit card issuers may choose to waive off late fees on payments as a gesture of goodwill towards their customers. This could be done in cases where the customer has a valid reason for the late payment, such as a financial hardship or an unforeseen circumstance. By waiving off late fees, credit card issuers aim to maintain a positive relationship with their customers and encourage timely payments in the future.

Explanation

Credit card issuers may choose to waive off late fees on payments as a gesture of goodwill towards their customers. This could be done in cases where the customer has a valid reason for the late payment, such as a financial hardship or an unforeseen circumstance. By waiving off late fees, credit card issuers aim to maintain a positive relationship with their customers and encourage timely payments in the future.

10. You can use a credit card provided by any company without ever having to pay interest.

True

False

It is possible to use a credit card provided by any company without paying interest if the balance is paid in full before the due date. By paying the full amount within the grace period, no interest will be charged. However, if the balance is not paid in full, interest will be applied to the remaining balance and the cardholder will have to pay interest. Therefore, it is possible to use a credit card without paying interest, but it requires responsible financial management.

Explanation

It is possible to use a credit card provided by any company without paying interest if the balance is paid in full before the due date. By paying the full amount within the grace period, no interest will be charged. However, if the balance is not paid in full, interest will be applied to the remaining balance and the cardholder will have to pay interest. Therefore, it is possible to use a credit card without paying interest, but it requires responsible financial management.