Vocabulary
Advantages/Disadvantages of Using a Credit Card
Credit Score
Credit or Debit?
100

The amount owed on a credit card at any given time. 

Balance

100

When you use your card responsibly your ________ will increase over time. 

Credit Score

100

What is the most important factor in building a good credit score? 

Paying your bills on time

100
Jade withdraws $100 dollars in cash from an ATM to go shopping. The money comes as a cash advance and a large fee. 

Credit 

200

This is the yearly interest rate you'll pay if you don't pay your balance by the end of the grace period. 

Annual Percentage Rate (APR) 
200

Credit card companies use _______ to market their products and entice customers to spend more money than they can afford. 

Credit Card Rewards

200

Why do we never want to close (or cancel) a credit card? 

To allow for your credit history (reputation) to continue building. 

200

Francesca buys a TV from Wal-Mart because her old one broke. She uses her card and is required to enter a PIN at the register. 

Debit

300

This is the maximum amount of money you can borrow using your card. 

Credit Limit or Credit Access Line

300

What card offers more fraud protection when making online purchases? 

Credit Cards

300

What are the four most common examples that fall within your 'Credit Mix'? 

- Credit Cards

- Mortgages (Home Loans) 

- Car Loans 

- Student Loans

300
Joe is planning to buy gifts for his family on Amazon. He wants to use a card that protects him from fraudulent purchases if his card number is stolen. Which card should he use? 

Credit card

400

The amount of time you have to pay off your purchases before owing interest. 

Grace Period

400

When you spend more than you can afford on a credit card, you are likely to go into _____________.  

Debt

400

What are the agencies called that calculate our credit score? 

Credit Bureaus. 

- Equifax 

- Transunion 

- Experian

400

Nico is hoping to buy plane tickets for a trip this summer. He uses a card that allows him to earn airline miles for each of his purchases. 

Credit 

500

This is the total amount of money you owe each month for using your card. This can include interest, annual fees, late fees, and more. 

Finance Charge

500
Making late payments will negatively our _______ making it less likely to be able to borrow funds in the future.  

Credit Score

500

Between what two numbers are credit scores used? 

300 - 850 

300 being the worst, 850 being the best. 

500

Filip purchased a gift for a friend using his card. Unfortunately, he forgot to pay his bill and now owes a late fee. 

Credit

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