Credit Card Jeopardy Round 2

Types of Cards

100

This type of credit card is guaranteed by some sort of collateral which the lender can legally take possession of if you don’t pay them back.

What is a secured credit card?

200

This type of credit card is granted on your promise and signature to repay the debt without committing your savings or other collateral as a guarantee.

What is an unsecured credit card?

300

When you’re checking out at Macy’s and the cashier asks “Would you like to save 20% today?”, he is probably trying to sell you:

What is a store credit card?

400

Store credit cards often have this comparative interest rate:

What is a high interest rate?

500

Applying for a store credit card often has this effect (name a specific #) on your credit score.

What is that it lowers your score by about 5 - 15 points?

Application

100

The annual fee for this card is:

What is zero?

200

The minimum monthly payment is:

What is approximately $27? (see page 6)

300

The credit limit for this card is determined by:

What is the income information you provided and a review of your debt? (see page 3)

400

The introductory APR for this card is:

What is 26.24%?

500

The fee for a cash advance on this card is:

What is 5% of the amount of the cash advance, but not less than $10?

Jane's New Furniture

100

Jane buys some new furniture for her apartment. It costs $1,600. Her credit card interest rate is the national average 15.16%. Her minimum payment is 2%. What is her monthly payment?

What is $32?

200

Jane buys some new furniture for her apartment. It costs $1,600. Her credit card interest rate is the national average 15.16%. Her minimum payment is 2%. How much will she pay off in total for her new furniture if she only makes monthly payments?

What is $3,501.02?

300

Jane buys some new furniture for her apartment. It costs $1,600. Her credit card interest rate is the national average 15.16%. Her minimum payment is 2%. How long will she be paying off her new furniture for?

What is 182 months, or 15 years, 2 months?

400

Jane buys some new furniture for her apartment. It costs $1,600. Her credit card interest rate is 22.56% because she had poor credit when she applied for her card. Her minimum payment is 2%. What is her monthly payment?

What is $32?

500

Jane buys some new furniture for her apartment. It costs $1,600. Her credit card interest rate is 22.56% because she had poor credit when she applied for her card. Her minimum payment is 2%. How much will she pay off in total for her new furniture if she only makes monthly payments?

What is $10,436.47?

Jane's Still Shopping

100

Jane buys some new furniture for her apartment. It costs $1,600. Her credit card interest rate is the national average 15.16%. Her minimum payment is 4%. What is her monthly payment?

What is $64?

200

Jane buys some new furniture for her apartment. It costs $1,600. Her credit card interest rate is the national average 15.16%. Her minimum payment is 4%. How much will she pay off in total for her new furniture if she only makes monthly payments?

What is $2,243.99?

300

Jane buys some new furniture for her apartment. It costs $1,600. Her credit card interest rate is the national average 15.16%. Her minimum payment is 4%. How long will she be paying off her new furniture for?

What is 6 years, 10 months? (82 months?)

400

Jane buys some new furniture for her apartment. It costs $1,600. Her credit card interest rate is 22.56% because she had poor credit when she applied for her card. Her minimum payment is 4%. How much will she pay off in total for her new furniture if she only makes monthly payments?

What is $2,822.65?

500

Jane buys some new furniture for her apartment. It costs $1,600. Her credit card interest rate is 22.56% because she had poor credit when she applied for her card. Her minimum payment is 4%. How long will she be paying off her new furniture for?

What is 8 years, 5 months? (101 months?)

Random Trivia

100

Some cards allow you to do this, but charge a high fee and often a higher APR. There is usually no grace period for this type of transaction, so you should consider this a last resort.

What is a cash advance?

200

Which of the following is likely to trigger the universal default clause in a cardholder’s contract? (meaning the card issuer can raise your APR automatically). You went over your credit limit on another card; you failed to make a payment to another creditor; or you applied for a received a loan).

What is all of the above?

300

This report is affected by the way you use your credit card.

What is your credit report?

400

6. either the student is over 21 years of age, or that the student is over 18 years of age and:

What is, has a reliable source of income?

500

If Jane could pay $96 per month at 15.16% interest, it would take her this long to pay off her credit card debt of $1,600 (assuming no new purchases):

What is 57 months, or 4 years 9 months?