APR
What does APR stand for?
Annual Percentage Rate
How many days’ notice must banks give before raising the interest rate?
At least 45 days
Name one type of credit card covered by the law.
Personal card or Student card
What happens if you don’t pay the full balance on your credit card?
The bank charges interest based on the APR on the remaining balance.
What does the law require in account statements?
They must be clear and show APR, fees, charges, and minimum payment.
What is required to get a student credit card?
Proof of income or a co-signer (parent or guardian)
What should you always try to pay on your credit card each month?
The full balance
Does a higher APR make your debt cheaper or more expensive?
More expensive
How long do consumers have to pay after receiving their statement?
At least 21 days
Give an example of a personal credit card.
Chase Freedom, Citi Double Cash, or American Express Blue Cash Everyday
Why shouldn’t you just pay the minimum?
Because the debt grows quickly with interest
Who gets extra protection under this law?
Students and people under 21 or with limited credit history
What kind of fees are no longer allowed?
Hidden or excessive fees
Name one way to manage your credit responsibly.
Check statements, spend only what you can afford, learn to manage credit
Name one practice that banks cannot do under this law.
Increase the interest rate without notice