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Quizzes > Business & Finance

Credit Card Quiz: Check Your Readiness and Statement Skills

Quick, free credit knowledge quiz. Instant results.

Editorial: Review CompletedCreated By: Muhammad Helmi Azhar Bin Zainal MoeUpdated Aug 25, 2025
Difficulty: Moderate
2-5mins
Learning OutcomesCheat Sheet
Paper art illustration for credit card knowledge quiz on a teal background

Use this credit card readiness quiz to check how well you read statements, spot fees and interest, and do quick math on balances and payments so you can avoid surprises. If you are choosing a card, try our which credit card quiz. Want to tackle rumors and facts? Take the credit card myths quiz. For broader borrowing skills, practice with the credit and borrowing quiz.

What does APR stand for on a credit card statement?
Annual Payment Rate
Annual Percentage Rate
Annual Process Rate
Applied Purchase Rate
APR stands for Annual Percentage Rate, representing the yearly cost of borrowing on the card including interest and certain fees. It is required to be disclosed by the Truth in Lending Act so consumers can compare credit costs. Understanding APR helps users know how much interest they will pay if balances are carried.
Which date on your statement indicates the last day transactions count toward that billing cycle?
Payment posting date
Payment due date
Statement opening date
Statement closing date
The statement closing date is the final day of the billing cycle, after which all transactions will appear on the current statement. Any purchases made after this date appear on the next cycle's statement. The due date is when payment must be received, not when transactions cease.
What's the purpose of a credit card's grace period?
Period used to calculate your average daily balance
Time allowed to skip a payment without credit impact
A penalty phase for late payments
A no-interest window if you pay the full balance by the due date
The grace period is a time during which you can pay your full statement balance without incurring interest on purchases. It typically runs from the statement closing date to the payment due date. If you carry any balance, you lose the grace period and interest accrues immediately.
How is the minimum payment on most credit cards typically calculated?
Full balance divided by number of days in billing cycle
The greater of a small percentage of the balance or a fixed dollar amount
A fixed $25 fee each month
A flat 2% of total purchases
Most issuers set the minimum payment as the greater of a small percentage (often 1 - 3%) of the statement balance or a minimum dollar figure (e.g., $25). This ensures small account balances still generate a minimum payment. Paying only the minimum prolongs repayment and increases interest costs.
Your statement shows an average daily balance of $1,000 and a monthly periodic rate of 1.5%. What is the interest charge for that period?
$15.00
$150.00
$10.00
$1.50
Interest is calculated by multiplying the average daily balance by the monthly periodic rate: $1,000 × 1.5% = $15.00. This is how most issuers determine finance charges each cycle. Knowing this helps you estimate the cost of carrying a balance.
If you miss the payment due date by one day, which fee is most likely assessed?
Annual fee
Late payment fee
Balance transfer fee
Foreign transaction fee
Missing the due date typically triggers a late payment fee as designated by your card agreement. This fee can range from $25 to $40 or more. It may also impact your credit score if reported.
What does your statement balance represent?
The total of purchases, fees and payments posted by the closing date
Your credit limit minus current spending
All charges and credits currently on the account, including new ones
The amount you must pay to avoid any interest
The statement balance is the sum of all transactions - purchases, fees, credits, and payments - posted by the cycle's closing date. Paying this in full by the due date avoids interest. Current balance can be higher or lower if you've made new transactions after closing.
To keep your credit utilization ratio under 30% on a $5,000 limit, your balance should stay below what amount?
$2,000
$3,000
$500
$1,500
Credit utilization is your balance divided by your credit limit. Under 30% usage on a $5,000 limit means keeping your balance below $1,500. Lower utilization helps maintain or improve credit scores.
After paying your entire statement balance by the due date, will you incur interest on new purchases in the next cycle?
Yes, always from the purchase date
No, as long as the full previous balance was paid
Yes, but only cash advances
Only if purchases exceed a certain amount
If you pay your full statement balance by the due date, you retain the grace period on new purchases and avoid interest. Carrying any balance eliminates the grace period, causing interest to accrue immediately. Cash advances never have a grace period.
A billing cycle runs from June 1 to June 30. You charged $500 on June 15 and paid it on June 20. What is your average daily balance?
$250.00
$83.33
$500.00
$16.67
Average daily balance is calculated by summing daily balances and dividing by days in cycle. Here, $500 applies for 5 days (June 15 - 19): 5×$500=2,500. Divide by 30 days: $2,500/30=$83.33. Payments reduce the balance immediately when posted.
When you take a cash advance, which rate applies and when does interest begin accruing?
Cash advance APR, interest after 30 days
Purchase APR, interest immediately
Cash advance APR, interest from the transaction date
Purchase APR, interest after the grace period
Cash advances typically carry a separate, higher APR and start accruing interest the moment the funds are withdrawn. There is no grace period for cash advances. Fees for cash advances can also apply up front.
Under the Truth in Lending Act, how many days' notice must a creditor give before a credit card payment due date?
At least 7 days
At least 30 days
At least 14 days
At least 21 days
TILA requires credit card issuers to provide at least 21 days between the statement date and payment due date. This gives consumers time to review statements and arrange funds. Shorter periods are prohibited by federal regulation.
Your statement lists: Previous Balance $500, Payments $200, Purchases $300, Finance Charges $10. What is the new balance?
$600
$620
$590
$610
New balance is calculated as previous balance minus payments plus purchases and finance charges: $500?$200+$300+$10=$610. This line-item approach is standard on credit statements. Careful reading prevents surprises.
A card offers 0% APR on balance transfers for 12 months, then 20% APR thereafter. If you transfer $1,000 and make no payments during the promotional period, what APR applies in month 13?
Variable APR based on prime rate
20% APR
0% APR
10% APR
Promotional 0% APR applies only for the first 12 months. After that, the regular APR - 20% in this example - takes effect on any remaining balance. Understanding promotional periods prevents unexpected interest charges.
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Study Outcomes

  1. Understand Statement Elements -

    Explain the main parts of a credit card statement, such as current balance, minimum payment, and payment due date, through the credit card reading quiz.

  2. Calculate Interest Charges -

    Apply basic math skills to compute interest costs based on APR, average daily balance, and billing cycle length in the getting a credit card math quiz.

  3. Interpret APR and Fees -

    Analyze how annual percentage rates and various fees affect overall credit costs, using sample scenarios from the credit card quiz.

  4. Evaluate Payment Strategies -

    Compare different payment approaches, such as minimum versus full payments, to see their impact on finance charges and payoff timelines.

  5. Identify Responsible Spending Habits -

    Recognize patterns and best practices for managing credit card use to maintain healthy credit and avoid unnecessary charges.

  6. Assess Credit Knowledge -

    Test and reinforce key credit concepts learned by tracking quiz scores and reviewing explanations in the credit card knowledge quiz.

Cheat Sheet

  1. Annual Percentage Rate (APR) and Daily Periodic Rate -

    Understand that APR represents the yearly cost of borrowing, including interest and fees, as defined by the CFPB. To calculate daily interest, divide the APR by 365 (for example, 18% APR/365 ≈ 0.0493% daily), then multiply by your balance and number of days to see how much you'll owe. Mastering this formula is key for any credit card math quiz and will help you breeze through a getting a credit card reading quiz.

  2. Grace Period and Interest-Free Window -

    Most issuers grant a grace period - usually 21 - 25 days - between the statement closing date and the payment due date, during which new purchases accrue no interest (source: Federal Reserve). If you pay your statement balance in full every month, you effectively borrow interest-free. Remember this rule to keep interest charges at bay and ace your credit card knowledge quiz.

  3. Minimum Payment Calculation -

    Lenders often require the greater of a fixed dollar amount (e.g., $25) or a percentage of your balance (commonly 1.5 - 3%). For instance, a 2% minimum on a $1,000 balance equals $20 due. Knowing how to compute and exceed your minimum payment can help you reduce debt faster and perform confidently on a credit card reading quiz.

  4. Credit Utilization Ratio -

    Your utilization ratio is your total balances divided by your total credit limits, recommended to stay below 30% by FICO and major card issuers. For example, $3,000 used across $10,000 total limit yields a 30% utilization. Keeping this metric low supports a stronger credit score and is a frequent focus in getting a credit card math quiz questions.

  5. Statement Layout and Key Terms -

    Familiarize yourself with sections like "New Balance," "Minimum Payment Due," "Due Date," and "Transaction Summary" to navigate any credit card statement quickly (source: Visa's consumer guide). Spotting late fees, annual fees, and promotional rates ensures you're never caught off guard. This practice proves invaluable when tackling a credit card reading quiz or deepening your overall credit card knowledge.

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