Credit Card Smarts
What is the biggest thing that helps your credit score
Paying on time
What do you call it when a card gives you money back
Cash back
When do you get charged interest
When you don’t pay your full bill.
What’s the most important rule with credit cards
Don’t spend more than you can pay back
Credit cards are always bad for you
credit cards are helpful if you use them responsibly
Is it better to use a small amount of your credit or a lot
A small amount
What do you earn if you want free flights or hotel nights
Points or Miles
What fee do you get for paying your bill late
A late fee
Is it smarter to use your card for planned things or surprise buys
Planned things.
Do you need to carry a balance to build credit
No you build credit by paying on time, even if you pay in full
Does keeping older credit cards open help your score
Yes
Should you buy stuff you don’t need just to get points
No. That makes you spend more
What is the fee called that some cards charge once a year
An annual fee
If you pay your whole bill, how much interest do you owe
Zero
Does a big credit limit mean you have to spend more
No. You choose how much you spend
Does getting lots of new cards fast help your score
No. It can hurt your score
What perk helps if something you bought breaks soon after
Purchase protection
What does interest mean
Extra money you have to pay if you don’t pay your balance.
What can you do to make sure you don’t overspend
Do you have to pay money to earn rewards
No. You earn them by buying normal stuf
Name one habit that helps build good credit
Pay on time
Use only a little
Keep cards open
Pay in full
What kind of spending is safest for earning rewards
Bills and things you already planned to buy
What is the easiest way to avoid paying any interest at all
Pay your bill in full every month
What can you set up so you never miss a payment
Automatic payments.
Does closing your oldest credit card help your score
No. It usually makes your score lower