Thursday, November 21, 2024

Scott Bilker
General Credit Card Knowledge Quiz
by Scott Bilker
 
Scott Bilker is the author of the best-selling books, Talk Your Way Out of Credit Card Debt, Credit Card and Debt Management, and How to be more Credit Card and Debt Smart. He's also the founder of DebtSmart.com. More about and DebtSmart can be found in the online media kit.

We all use credit everyday and it’s important to know the basics of handling our debt to ensure that we’re always getting the best deal. Take the below quiz to check your personal plastic awareness level!
 
1. What type of credit card starts with the first digit of 5?
MasterCard
Visa
Discover
American Express
I don't know!
2. According to federal law, in cases of credit card fraud, what is the maximum amount the consumer can be liable for?
Nothing
$10
$25
$50
$100
I don't know!
3. A "grace period" is…
The amount of time you have between when your bill is due and when you are charged a late fee.
A time period during which you can pay your credit-card bill without paying a finance charge.
A period that some card issuers offer new customers that includes a low APR for the first several months.
I don't know!
4. What is a secured credit card?
A card with a microprocessor built into it in order to provide security in online transactions.
A card where you deposit money into a savings account to act as collateral against your credit line.
A card with a fixed annual percentage rate of the finance charge.
I don't know!
5. A credit card with a margin of 3 points has…
An APR of 3 percentage points above a specific interest rate index.
A difference of 3 percentage points between the rate on purchases and cash advances.
A minimum monthly payment of 3 percent of the total balance.
I don't know!
6. When disputing charges, how much time do you have to contact your creditor after receiving your bill?
1 billing cycle
A year
60 days
I don't know!
7. When a credit card offers revolving credit it means that…
credit is repeatedly available up to a specified amount as periodic repayments are made.
the APR changes based on the Prime Rate.
The bank has the right to raise the APR after several late or missed payments.
I don't know!
8. The APR of a variable-rate credit card can be based on which of these indexes?
The Prime rate
The one-month Treasury Bill rate
The three-month Treasury Bill rate
The six-month Treasury Bill rate
The Federal Reserve Discount rate
Any of the above
I don't know!
9. Which of these is an example of a chargeback?
You call your credit card bank and tell them that they charged you an invalid late fee, and they remove the fee.
You write a letter to your credit card bank and tell them that you were charged for something you didn't buy, and they credit your account.
You buy something at a local store with your credit card, but decide to return it later that day, and the merchant credits your account.
I don't know!
10. Which of these statements about debit cards is NOT true?
Debit card purchases take money directly out of your bank account.
Debit cards offer the same kind of legal protections from fraud that credit cards do.
The use of a debit card sometimes results in extra charges toward the consumer.
Under federal law you risk unlimited loss if you fail to report an unauthorized transfer or withdrawal within 60 days after your debit card statement is mailed to you.
I don't know!



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