Credit Card Quiz II

What does the term "Universal Default" mean in relation to your credit cards?
- You must pay all your outstanding credit card debt within 30 days.
- Your relatives must pay your outstanding credit card debt after your death.
- Your interest rate charges can be raised if you don't pay a bill on time even if it isn't related to your credit card.
- Your interest rate charges can be raised if you don't pay your credit card bill on time.
When can the interest rate charged by credit cards with a variable interest rate be changed?
- They can't change the credit card interest rate once you have the card.
- When the Federal Reserve changes short term interest rates with 30 days written notice.
- When the Federal Reserve changes short term interest rates with 15 days written notice.
- Anytime with 15 days written notice.
When can the interest rate charged by credit cards with a fixed interest rate be changed?
- They can't change the credit card interest rate once you have the card.
- When the Federal Reserve changes short term interest rates with 30 days written notice.
- When the Federal Reserve changes short term interest rates with 15 days written notice.
- Anytime with 15 days written notice.
What is the federally imposed limit on the amount of interest credit card companies are allowed to charge?
- There is no limit.
- 25% above the Federal Reserve short term interest rate.
- 35% above the Federal Reserve short term interest rate
- 50% above the Federal Reserve short term interest rate.
When you get charged an "over-the-limit" fee on your credit card, which of the following will happen?
- You'll be charged the fee every month until you reduce your balance to under the credit card limit.
- You'll be charged a one time fee and your credit card will be suspended.
- You'll be charged a one time fee and your interest rate will be raised to the highest level.
- You'll be charged a one time fee and your credit card limit will be raised.
When taking out a cash advance with a credit card, what is the typical grace period you have to pay it off before interest begins being charged?
- 0 days. You must begin paying interest immediately.
- It depends on the credit card, but typically 10 days.
- It depends on the credit card, but typically 20 - 25 days.
- It depends on the credit card, but typically from the time your next credit card statement arrives.
How is the interest calculated with "two-cycle billing" in relation to credit cards?
- On the outstanding balance at the end of the billing cycle.
- On the average daily balance during the entire billing cycle.
- On the average daily balance during the entire billing cycle and the previous months billing cycle.
- On the balance at the beginning of the current billing cycle.
If you call your credit card company and ask to have your credit card interest rate lowered, what are the chances that the credit card company will do so?
- Approximately 10%.
- Approximately 25%.
- Approximately 50%.
- More than 50%.
What happens when a credit card company uses "bait and switch" tactics when offering you a credit card?
- It's when you pay for a secured credit card, but then one never comes.
- It's when you apply for one credit card, but a different credit card is sent to you.
- A credit card company sends you an application for a credit card they know you won't qualify for and when you return the application, they call and try to hard sell you on a higher interest credit card.
- It's a special credit card only available for fishermen.
Is it true that some credit cards charge an "inactivity fee?"
- No, there is no such fee.
- Yes. Most credit cards that charge this fee do so after 3 months of inactivity.
- Yes. Most credit cards that charge this fee do so after 6 months of inactivity.
- Yes. Most credit cards that charge this fee do so after 1 year of inactivity.

Credit Card Quiz II

Credit Card Quiz 2