A line of credit is ___________________.

A set amount of money that you are allowed to borrow

Someone who is requesting a loan and will pay it back

What is buying on credit?

Making a purchase now and promising to repay later

Where does a debit card get its money from?

Your bank account (Savings or Checking)

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

A low interest rate and low fees

Falling into serious credit card debt __________________.

Can easily occur and happens to millions of people

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

Interest is charged on the money not paid back

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Credit Cards!

19 termsStudBud Administration13 plays

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

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Questions 19

Answers

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

Credit Cards! Flashcards | StudBud