Use credit cards without carrying interest: test your skills
Pay the full statement balance by the due date and a card costs nothing. Here is exactly how the grace period works. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Explain the grace period
- Know the statement and due dates
- See what a carried balance costs
- Practice
1. What keeps the grace period?
- Practice
2. Cash advances usually…
- Practice
3. Rewards are a real gain only when…
- Key idea
4. Which statement best explains "Full balance, every month"?
- Key idea
5. Which statement best explains "Autopay the minimum as insurance"?
- Key idea
6. Which statement best explains "Rewards follow, not lead"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
A $900 balance at 21% APR. You pay $300. Roughly what is next month’s interest (unpaid × APR ÷ 12)?
Show the answer
About $10.50
Unpaid $600. $600 × 0.21 ÷ 12 = $10.50.
Find your card’s statement closing date and due date and add both to your calendar.
More tests in this bootcamp
- Judge debt by its purpose, rate and total cost
- Choose a debt payoff plan: avalanche or snowball
- Compare debt consolidation without missing the fees
- Use credit cards without carrying interest
- Understand what moves your credit score
- Check your credit report and question errors
- Protect your identity and know the recovery steps
- Respond to debt collectors with records and confidence
- Understand your student loan repayment options
- Compare car loans beyond the monthly payment
- Decode your mortgage payment: principal, interest, taxes and insurance
- Final exam: Debt and credit