Credit Basics
This is the definition of credit.
What is borrowing money you must pay back later?
This is the definition of debit.
what is money taken directly from your bank account?
this happens when you only pay the minimum amount on your credit card
what is you get charged interest?
what kind of fee may happen if you spend more than what's in your account.
what is an overdraft fee?
this is the number that shows how well you manage credit
what is a credit score?
True or False: Credit cards use your own money immediately
What is false?
What is a checking account?
This is the max amount you can borrow on a credit card.
what is your credit limit?
debit cards are great for budgeting because of this reason.
what is you can only spend what you have?
a good credit score can help you do this.
what is qualify for loans or lower interest rates?
When you use credit, you might be charged this if you do not pay on time.
What is interest?
True or False: You can go into debt with a debit card
what is true (if you overdraft)?
one benefit of credit cards is earning these.
what are rewards or cashback?
name one situation where using a debit card might not be the best option.
what is renting a car, booking hotels, or online shopping?
one thing that can lower your credit score is this.
what is missing payments?
Credit cards are connected to this kind of financial arrangement.
What is a line of credit.
Name one way to avoid overdraft fees.
What is keep track of your balance?
late credit card payments can hurt this
what is your credit score?
name one disadvantage of a debit card compared to a credit card.
what is no credit building or fewer protections?
besides payment history, name one thing that affects credit scores?
what is credit utilization, length of credit, or new inquiries?
Name two places where your credit history can matter.
What are getting a loan and renting an apartment?
this is the biggest difference between credit and debit
debit uses your money and credit borrows money
this is a common pitfall when using credit cards irresponsibly.
what is falling into debt?
true or false: debit cards affect your credit score
what is false
what is a typical credit score range?
what is between 300-900