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This article was first published 13 years ago

Quiz: 10 must-know credit card FACTS

Last updated on: May 31, 2011 19:04 IST


Photographs: Rediff Archives Salil Dhawan, Investment-mantra.in

Do you know your credit card limit from the outstanding balance on your card?

Do you know why you should pay your entire outstanding balance every month before the due date?

Do you know the pros and cons of availing a balance transfer on your credit card?

Here's a quiz on credit card designed to test your basics:

1. How does the bank decide credit limit on your credit card?

a. Based on your ability to handle debt
b. Uniform for all individuals depending on the age
c. Depends on how much you ask for at first place

Courtesy: www.investment-mantra.in

Quiz: 10 must-know credit card FACTS


2. Is paying the minimum monthly payment on credit card amount outstanding a good option?

a. Yes as you need to pay less amount than what you shopped for
b. There is no such facility available with credit cards
c. Not a good idea as your debt keeps on piling up

Quiz: 10 must-know credit card FACTS


Photographs: Jo Yong-Hak/Reuters

3. What if your credit card is lost or stolen?

a. Call customer care of bank and block your card immediately
b. No action is required for the same
c. None of above

Quiz: 10 must-know credit card FACTS


Photographs: Claro Cortes IV CC/Reuters

4. What are the advantages of using a credit card?

a. Cash is always riskier to carry, besides the limit to the amount you can carry in your wallet
b. Entitle you to other benefit like discount at shops, restaurants and airline tickets and a global card assures you of spending in any currency and settling your dues in your home currency.
c. All of above

Quiz: 10 must-know credit card FACTS


Photographs: Richard Chung/Reuters

5. Is it advisable to use the cash advance facility?

a. Cash advance facility should be used only when absolutely necessary as interest rate is very high
b. It should be used frequently
c. There is no such facility available

Quiz: 10 must-know credit card FACTS


Photographs: Kim Kyung-Hoon/Reuters

6. Does the add-on card have a separate credit limit?

a. No, the add-on card member shares the same credit limit as assigned to the primary card member
b. Yes it has a separate credit limit
c. There is no such facility available

Quiz: 10 must-know credit card FACTS


7. What factors do you need to consider while selecting a credit card?

a. Joining and annual fees and credit limit provided
b. The interest rate levied by banks whenever you revolve your outstanding balance into your next billing cycle and identify a card suiting your needs & where you spend the most
c. All of above

Quiz: 10 must-know credit card FACTS


8. What is balance transfer on credit cards?

a. Process of transferring the existing outstanding balance or debt from one credit card to another credit card
b. Outstanding remaining on the card
c. None of above

Quiz: 10 must-know credit card FACTS


9. Why giving a close look to credit card statement is significant?

a. To make sure there is no extra charge apart from your usage are levied and look for exact billing amount and due date
b. It is not important as you already know how much you have spent
c. None of above

Quiz: 10 must-know credit card FACTS


10. What are things you should consider while doing a purchase through credit card?

a. Make wise decisions about purchasing items you need versus those you simply want and let your creditor know in advance if you won't be able to make your monthly payment on time
b. Negotiate a lower interest rate and try to stay well stay within your credit limit
c. All of above