Credit & Debit Cards
True or False:
A credit card takes money directly from your account.
FALSE
If Nasir orders a new pair of sneakers online, he would be wise to use a _______ card.
Credit
When using a debit card, you're required to enter your _______.
PIN
If you don't pay your bills on time, your credit score will ________.
Drop
Using a credit card irresponsibly can lead to overspending and put people into _________.
Debt
True or False:
Debit cards are considered SAFER than credit cards when making online purchases.
FALSE
What does PIN stand for?
Personal
Identification
Number
The paperwork you get about your credit card usage at the end of every month is called your ???
Credit Card Statement
Which of the following factors DO NOT impact your credit score:
- Amount you owe on loans
- Number of late bills
- Age of your first credit card account
- Religious beliefs
Religious beliefs
What are 2 disadvantages to credit cards if they are used IRRESPONSIBLY
- Can damage your credit score/history
- Debt
- Interest charges / Fees
- Etc.
NO!
Dennis was recently paid from his job as a waiter. This afternoon, he bought lunch from a restaurant with a card that deducted his purchase directly from his account. What kind of card did he use?
Debit
What term is the 30 day time frame you have to pay your credit card balance?
Grace Period
What are some items that having a good credit score helps you to purchase?
- New House
- New Car
- Apartment
ETC.
A Schumer Box
List 3 advantages to using a credit card RESPONSIBLY
- Rewards
- Fraud protection
- Access to emergency funds
- Etc.
Because JoJo didn't pay his full credit card balance last month, he was charged __________.
Interest
What is a balance transfer?
When you transfer the balance from one card to another.
*May be to a card with a lower interest rate
*May be to combine debts
What is the range of credit scores?
________ to ________
300 - 850
How can a card holder AVOID paying interest on their credit card?
Pay your balance in full each month
The APR (written as a %) for a credit card stands for WHAT?
(This is the yearly interest rate you pay if you carry a balance on your card)
What is a cash advance?
Using a credit card to obtain money from an ATM
The smallest amount of money a credit card user can pay towards their balance each month is called WHAT???
Minimum Payment
Name 1 of the 3 most common credit bureaus.
TransUnion
Equifax
Experian
Explain credit limit.
The maximum amount of money you can borrow using your credit card.