Credit Card Quiz
Questions: 16 · 10 minutes
1. Why can using a credit card for a cash advance be more expensive than making a purchase?
Cash advances cannot be repaid before the next statement closes
Cash advances permanently reduce the card's stated credit limit
Every cash advance is converted into an installment loan with no choice
Cash advances often have a fee and may begin accruing interest immediately
2. During one month, carrying a balance costs you $45 in interest while the same card earns $20 in rewards. Ignoring other fees and benefits, what is the net financial result for that month?
A $25 cost
A $45 gain
A $20 gain
A $65 gain
3. You want autopay to prevent missed due dates while also avoiding interest on eligible purchases whenever possible. Which setting is generally the best fit, provided enough money will be in your bank account?
Pay the full statement balance by the due date
Pay a fixed amount below the minimum
Pay only after the card reaches its limit
Pay the current balance on the statement closing date regardless of available funds
4. A rewards card costs $95 per year and would earn you about $120 more in annual rewards than a no-fee alternative. Ignoring other benefits and costs, what is the approximate net advantage?
$15
$215
$95
$25
5. You notice a transaction you do not recognize. What is the most appropriate first response?
Wait several billing cycles to see whether more charges appear
Post the full card number publicly to ask whether anyone recognizes the merchant
Lock the card if that feature is available and promptly contact the issuer through a trusted channel
Make another purchase from the same merchant to test the account
6. You have balances on three cards with different APRs. After making every required minimum payment, which strategy generally minimizes interest cost if you can direct extra money to one balance?
Pay the card with the most rewards first
Divide the extra payment according to each card's credit limit
Direct the extra payment to the balance with the highest APR
Pay the card with the lowest APR first
7. Two cards have identical fees and calculate interest the same way. If you expect to carry a balance, which card would generally cost less in interest?
The card with the lower APR
The card with the longer account number
The card with the higher credit limit
The card with the higher rewards rate
8. What is the usual difference between a credit card issuer and a payment network?
The network lends the cardholder money, while the issuer only prints the card
The issuer manages the credit account and terms, while the network helps route transactions
The issuer operates every shop that accepts the card, while the network sets the cardholder's budget
The network collects the cardholder's monthly payment, while the issuer only provides rewards
9. A card has a $5,000 limit, $1,200 in posted purchases, and a $300 pending purchase. Ignoring other holds or payments, approximately how much credit would remain after the pending purchase posts?
$3,200
$3,500
$3,800
$4,700
10. A balance-transfer offer charges a 3% transfer fee. How much would the fee be on a $3,000 transfer?
$30
$60
$900
$90
11. A card has a $3,000 credit limit and a reported balance of $600. What is its credit utilization percentage?
5%
20%
50%
80%
12. A restaurant charge appears as “pending” for more than the amount on your receipt. What is the most likely explanation?
The credit limit has automatically increased by the difference
The charge has already been permanently added to every future statement
A temporary authorization may include an estimated tip or hold and can change when the final amount posts
The pending amount is the card's annual fee
13. You frequently buy items in another currency. Which card feature most directly helps reduce an extra issuer fee on those purchases?
A higher cash-advance limit
No foreign transaction fee
A later statement closing date
A lower minimum payment
14. Your statement balance is $800, but your current balance is $980 because you made a new purchase after the statement closed. If your card has a grace period and you carried no earlier balance, what would you generally pay by the due date to avoid interest on the statement's purchases?
Half of the $980 current balance
Only the minimum payment shown
The $800 statement balance
Only the purchases made after the statement closed
15. Which statement about a late credit card payment is most accurate?
It may trigger account charges or interest consequences and, depending on timing and reporting rules, can affect credit history
It automatically becomes a cash advance
It has no possible consequence as long as a later purchase is approved
It immediately cancels all interest already charged
16. What is the usual long-term effect of repeatedly making only the minimum required payment while continuing to carry a balance?
The issuer automatically lowers the APR each month
The remaining balance stops accruing interest
The debt is paid off almost as quickly as with full payments
Repayment usually takes longer and costs more in interest