To test your credit card IQ, you’ll have to ask yourself a few questions. For example, you may not be sure which credit card to go for, or you may not know how to use the one you already have.

Ignoring some of these questions might cost you in the long run. As such, always read the fine print and ask your issuer about anything that you don’t understand. It’s not wise to sign on to a new credit product without knowing precisely what you are getting into.


If you’re not sure about specific details about your card, read on. This article will help you test your credit card IQ and find the answers to the top 5 questions about using credit cards today.

credit card IQ

1. How Many Credit Cards Should I Have?

There is no definite answer to this. Some financial advisors say people should have none, while others say to have as many as you can.

Consider your spending habits and ask yourself if one card is able to cater to all of your needs. As long as you can pay your balances in full and on time, then go for as many cards as you want to.

2. Should I Carry a Balance?

The answer is a big “NO”. Only carry a balance in the event that you have an emergency or are planning to self-finance a big purchase. Otherwise, there is no need to carry a balance.

Carrying a balance unnecessarily will only lead you to pay more in interest charges in the long run. It can also negatively affect your credit score.

3. What Is the Point of a Credit Score?

Your FICO score will largely determine whether you can access credit or not. It will also determine what interest rate lenders will likely impose on you, and the credit limit you will be offered. Keep in mind that the higher your credit score, the more trustworthy you appear.

4. How Often Should I Check My Credit Score?

Check your credit score as often as you can. This helps you get an idea of how you are handling your finances. Checking it often will also let you see when you are making progress.

5. Which Card Should I Pay Off First: Higher Balance or Higher Interest?

Many financial advisors insist that paying the high-interest card first is best, as this saves you a lot in interest payments. However, some people argue that paying off the lowest balance first gives you the momentum needed to keep up with tackling all your debt.

To know what’s right for you, get in touch with your inner motivations and determine which method will work best for you.

credit card

Bottom Line

Credit cards come with their burdens, but they also come with notable benefits. But if you are not careful, you can sink into debt. With the right information and guidance, you are guaranteed to enjoy using your credit cards. Now that you’ve tested your credit card IQ, you can hopefully go forward with more knowledge about credit.