APR COMPREHENSIVE EXAMINATION TEST
2026 FULL QUESTIONS AND CORRECT
ANSWERS
▶ 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.
▶ Interest Rate. Answer: The percentage, per unit of time (monthly), that a
bank or financial institution charges a customer for borrowing money.
Ideally you want the lowest possible interest rate, especially if you carry a
balance each month.
▶ Interest. Answer: Also known as a finance charge, interest is the fee you
pay for borrowing money. This is the main way credit card companies
profit. Interest is listed on your credit card statement as the Monthly
Finance Charge.
2026 FULL QUESTIONS AND CORRECT
ANSWERS
▶ 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.
▶ Interest Rate. Answer: The percentage, per unit of time (monthly), that a
bank or financial institution charges a customer for borrowing money.
Ideally you want the lowest possible interest rate, especially if you carry a
balance each month.
▶ Interest. Answer: Also known as a finance charge, interest is the fee you
pay for borrowing money. This is the main way credit card companies
profit. Interest is listed on your credit card statement as the Monthly
Finance Charge.
