Key terms
A financial institution's evaluation of an individual's ability to manage debt
Credit rating/score.
FICO scores rage from...
300-850
When you are making purchases with a credit card you are..
borrowing money from your card provider.
Do debit cards help you build credit
No, debit cards and connot increase or decrease credit score
Is credit history looked into when getting a prepaid card?
The once-a-year cost of owning a credit card
Annual fee
The three main credit bureaus
Experian, TransUnion, and Equifax
Credit cards can be used for
making big purchases and paying them off over time, earn cashback and rewards, reduce debt by paying a lower interest, etc.
Is intrest paid on a debit card?
No when using a debit card, you will not have to pay any interest because you are using your own money.
No, because intrest is not paid on a prepaid card.
A printed booklet a credit cardholder receives that contains all the "fine print" about the card's terms.
Cardholder Agreement
Your financial history is contained in...
A credit report
Do you always have to pay interest on my credit card?
No, as long as you pay off the balance or pay the minimum on time, you will not have to pay interest.
Check card
Why do prepaid cards help avoid debt?
Prepaid cards help some people avoid debt and overspending because you cannot spend more money than what you put into the card.
The period of time between the billing statement date and the date full payment must be received before interest is charged on your account balance and new purchases.
Grace period
If I make payments in full and on time every month, how will it affect my credit score?
It will go up, or stay the same.
What is included in monthly card statements?
All card activity
Do debit cards have more or less protection from theft compared to credit cards?
Debit cards have less card protection than credit cards.
Do these cards expire?
Yes, prepaid cards do expire which is why it's important to look whether a certain card does or does not expire.
A banking service that allows you to link your checking account to your credit card
Overdraft Protection
How many credit reports are you entitled to each year from your credit bureau.
3
Someone who legally agrees to take responsibility for a person's debt if they don't pay it.
A co-signer
The account the money coming out of when you make a purchase with a debit card
Checking account
Are gift cards a type of prepaid card?