Someone who is requesting a loan and will pay it back

When shopping around to obtain a credit card, it is important to make sure it has_____________.

A low interest rate and low fees

Where does a debit card get its money from?

Your bank account (Savings or Checking)

A line of credit is ___________________.

A set amount of money that you are allowed to borrow

What happens if you don't pay off your credit card debt?

Interest is charged on the money not paid back

What is buying on credit?

Making a purchase now and promising to repay later

Falling into serious credit card debt __________________.

Can easily occur and happens to millions of Americans

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Credit Cards

22 termsStudBud Administration9 plays

Introducing the concept of #credit cards in #financial literacy.

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Questions 22

Answers

1
What is a borrower?
Someone who is requesting a loan and will pay it back
Someone who lends the money
No clue
Someone who is requesting a loan and will NOT pay it back
2
When shopping around to obtain a credit card, it is important to make sure it has_____________.
A low interest rate and low fees
A high popularity rating
Fancy perks and reward programs
A high interest rate
3
True or False: Credit card interest is a good thing.
True
False
4
When you use a credit card, where does the money come from?
Your wallet
Your bank account
The government
It is borrowed
5
Where does a debit card get its money from?
Your wallet
Your bank account (Savings or Checking)
You father
It is borrowed
6
Which one of these is NOT a type of interest
Credit Card Interest
Compound
Progressive
Simple
7
What is a disadvantage to using a credit card?
Record Keeping
Convenience
Overspending
Credit Score
8
What is an advantage of using a credit card?
Convenience
Interest Rates
Overspending
Paperwork
9
What is a benefit of a good credit score?
You can be approved for loans
All of the above
You get a lower interest rate
You are not considered a risk
10
A line of credit is ___________________.
How many credit cards you have
A set amount of money that you are allowed to borrow
The money you have in your bank account
All of the above
11
One way to avoid staying out of credit card debt is ____________________.
All of the above
Keep track of your balance
Limit the number of credit cards you have to one
Don't buy anything you can't afford
12
What is the best way to avoid paying interest on your credit card?
Pay the bill in full
Pay only the minimum payment required at that time
Don't pay the bill
13
What is an APR?
Animal Protective Rights
Annual Percentage Rate
Annual Percentage Rations
Apple Pudding Right?
14
What type of numerical credit is used to quickly understand how risky a borrower you are?
Credit Report
Credit information
Credit score
Credit bureau
15
When is it OK to borrow money?
To buy a new TV
When you can pay it back
To buy a new car
All of the above
16
What was the name of the first credit card?
Visa
Discover
Diners Club
Mastercard
17
Credit reports contain which of the following items?
All of the above
Payment history
Name of lender and account number
Credit limit
18
Which one of these is not required to open a credit account ?
Social Security Number
Proof of employment
Signature from an adult (if under 18)
Savings account
19
What happens if you don't pay off your credit card debt?
The bank gives you more money
Interest is charged on the money not paid back
Your account automatically closes
The police come after you
20
What is buying on credit?
Saving money
You get money back from buying on credit
Making a purchase now and not promising to repay later
Making a purchase now and promising to repay later
21
A credit card represents _______________________.
All of the above
Free money
Is the same things as a debit card
A line of credit
22
Falling into serious credit card debt __________________.
Can easily occur and happens to millions of Americans
Rarely happens to people
Only happens in movies
Only happens to those that lose their jobs

Credit Cards Flashcards | StudBud