By Eileen AJ Connelly -- AP Personal Finance Writer

What's better, a low interest rate or generous rewards points? Does it matter where you use your credit card, or is it how much debt you have that's important?

Take this short quiz and find out some important information about using and managing your credit cards.


Questions:

1. What's more important for your credit score?

a) Your payment history
b) How many credit cards you have
c) How long you've had your cards
d) How many times you've applied for credit cards


2. True or false: Studies have shown that people spend more when they are using credit cards than when they're shopping with cash.

3. The typical American carries a balance of $3,000 in credit card debt. If you make no more charges and pay only the minimum payment due each month, how long will it take to pay that debt off at 10 percent interest?

a) 2 years
b) 8 years
c) 18 years
d) 29 years


4. Once you open an account with a certain interest rate, the bank may raise that rate:

a) If you miss a payment on that card
b) If you miss a payment on another card or loan
c) If you lose your job
d) At any time


5. True or false: Credit card issuers always give you a "grace period" to pay your purchase in full before finance charges are applied.

6. If you pay off the balance on a high-interest credit card, the best thing to do is:

a) Close the account
b) Leave the account open but don't use it again
c) Leave the account open and use it once in a while
d) Charge up the balance again


7. True or false: You can judge whether banks think you're a good credit risk by the number of credit card offers you receive in the mail.

8. Rewards or points on your credit card are a good deal only if:

a) You get free airline tickets
b) You get cash back
c) You carry no balance on the card
d) The card has no annual fee


9. Credit card issuers look at the following when deciding whether to change your credit limit:

a) Your payment history
b) The limits on other cards you hold
c) The types of places you use your card
d) All of the above


10. How is the interest charged on your account each month calculated?
a) The annual percentage rate (APR), multiplied by your balance
b) APR divided by 12 months, multiplied by your balance
c) APR multiplied by your new charges
d) APR multiplied by the balance left unpaid the prior month

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