APR ACTUAL EXAM SCRIPT 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
▶ Annual Fees. Answer: An annual (yearly) fee associated with having a
credit card is a separate fee from interest rate on purchases
▶ Balance Transfer. Answer: moving a balance from one credit card
account to another
▶ Billing Cycle. Answer: regular schedule of sending statements to
patients
▶ Cash Advance Transaction. Answer: A fee assessed on the date a new
cash advance transaction is posted to an account. If your spending habits
include accessing accounts for cash, you want to avoid this kind of fee or
look for the lowest one possible.
▶ Monthly Finance Charge. Answer: If your credit card balance is not paid
in full each month, you will be charged a Monthly Finance Charge. The
charge is calculated on the statement closing date by multiplying the
Average Daily Balance on the account by the Monthly Finance Charge or
the Annual Percentage Rate divided by 12.
▶ Credit Rating. Answer: A rating (or score) calculated by the credit
bureaus and based on your past payment behavior, income, employment
and other factors that serve as a general predictor of ability to repay debts.
Each credit bureau has their own formula for getting this score, that is why
when keeping an eye on your credit you want to get the reports from all
three bureaus.
▶ Grace Period. Answer: The grace period is a term which can cause
more confusion than you might think. The grace period is the time between
the date of purchase and the date that the interest starts being charged. If
your card has a standard grace period, it allows you to avoid finance
charges by paying the current balance in full. If there is no grace period, the
issuer imposes a finance charge from the date you use your card or the
date each transaction is posted to your account.
WITH SOLUTIONS GRADED A+
▶ Annual Fees. Answer: An annual (yearly) fee associated with having a
credit card is a separate fee from interest rate on purchases
▶ Balance Transfer. Answer: moving a balance from one credit card
account to another
▶ Billing Cycle. Answer: regular schedule of sending statements to
patients
▶ Cash Advance Transaction. Answer: A fee assessed on the date a new
cash advance transaction is posted to an account. If your spending habits
include accessing accounts for cash, you want to avoid this kind of fee or
look for the lowest one possible.
▶ Monthly Finance Charge. Answer: If your credit card balance is not paid
in full each month, you will be charged a Monthly Finance Charge. The
charge is calculated on the statement closing date by multiplying the
Average Daily Balance on the account by the Monthly Finance Charge or
the Annual Percentage Rate divided by 12.
▶ Credit Rating. Answer: A rating (or score) calculated by the credit
bureaus and based on your past payment behavior, income, employment
and other factors that serve as a general predictor of ability to repay debts.
Each credit bureau has their own formula for getting this score, that is why
when keeping an eye on your credit you want to get the reports from all
three bureaus.
▶ Grace Period. Answer: The grace period is a term which can cause
more confusion than you might think. The grace period is the time between
the date of purchase and the date that the interest starts being charged. If
your card has a standard grace period, it allows you to avoid finance
charges by paying the current balance in full. If there is no grace period, the
issuer imposes a finance charge from the date you use your card or the
date each transaction is posted to your account.
