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The Ultimate Revolving Credit Quiz
by Staff
Revolving credit has its advantages and disadvantages: you can use the money to buy anything you'd like, but the temptation to over-spend can be difficult to resist. You can pay back the money at your convenience, but if get behind on your payments you can accrue massive debt.

When you revolve your credit you are doing which of these?

  • You are carrying a balance from month to month.
  • You are using one credit account to pay off another.
  • You are increasing your credit limit from month to month.

What is the range of interest that credit card companies usually charge?

  • 3 - 5 percent
  • 8 - 12 percent
  • 10 - 28 percent

What was the approximate revolving credit debt of U.S. consumers in 2007?

  • $900 million
  • $900 billion
  • $900 trillion

What percentage of credit card holders pay their credit card bills on time?

  • 20 percent
  • 30 percent
  • 40 percent

What percentage of Americans carry a credit debt of over $9,000?

  • 8 percent
  • 12 percent
  • 15 percent

What are the two basic types of credit?

  • open-end and closed-end
  • prime and sub-prime
  • profit and non-profit

Which of these statements best describes a closed-end loan?

  • You receive a lump sum of money, which you may pay back at any time.
  • You borrow a specific amount of money, at a specific interest rate, to be paid back at a specific time.
  • You get a credit card that has a cash limit.

Which of these is an example of a closed-end loan?

  • a mortgage
  • a credit card
  • a home equity credit line

Why is a credit card considered a type of open-end loan?

  • You don't have a specific date by which you must repay the debt.
  • You never know how much you actually owe.
  • You can use it to pay off a different loan.

The minimum amount you must pay on a credit card balance is usually around what percentage?

  • 2 - 4 percent
  • 5 - 10 percent
  • 10 - 15 percent

What percentage of Americans make only minimum payments on their monthly balance?

  • one in three
  • one in six
  • one in nine

How do you calculate your home's equity?

  • Your home's equity is your home's current market value.
  • Subtract what you owe on the house from the value of the house.
  • Divide what still owe on your home into 360 equal payments.

What is the biggest advantage to a revolving credit loan?

  • You may use the money to purchase anything.
  • You don't have to pay the money back.
  • You can decrease the interest on the loan whenever you'd like.

What percentage of Americans have 10 credit cards or more?

  • 5 percent
  • 10 percent
  • 15 percent

One of the most problematic aspects of revolving credit is which of these fine-print conditions?

  • The lender has the right to change the conditions of the loan at any time.
  • The credit cards can get stolen.
  • The loan appears on your credit report.