When goods, services, or money is received in exchange for a promise to pay the money back at a future date.
What is credit?
100
A loan used to purchase a home.
What is mortgage?
100
Used to help students pay for university tuition, books, and living expenses.
What is a student loan?
100
School loans, Automobile, Home
What are times when it is appropriate to use credit?
100
Debit card is connected to a bank account, Credit card is borrowed money that has to be paid back, and You have to pay interest when using a credit card.
What are the differences between a debit card and a credit card?
200
A profile or report of a person's debt and repayment habits, which is built up over the course of several years.
What is credit history?
200
A record of your transactions completed during a billing period.
What is a credit card statement?
200
A plastic card that holds pre-approved credit which can be used for the purchase of items now and payment later.
What is a credit card?
200
Sign the back of your credit card and/or put "Please See I.D"
What are ways to protect your credit card and/or credit card information.
200
Dinner and a movie, buying gum, and buying things you want that you can't afford to pay back.
What are examples of when it is not appropriate to use credit?
300
The least amount of money to be repaid on a loan or credit card in order to keep the account in good standing.
What is minimum payment?
300
An agreement between a borrower and a lender where the borrower agrees to repay a fixed amount of money with interest over a period of time. Generally used for large purchases.
What is a loan?
300
The interest rate charged on a credit card over one year.
What is Annual Percentage Rate (APR)?
300
Fees, Interest, Identity Theft, and Overspending (Debt)
What are disadvantages of using a credit card?
300
Your cost of borrowing will be lower in the future. (Lower interest rates)
What is a benefit of making financial decisions that result in a good credit histories?
400
Charge for borrowing money, generally calculated as a percentage of the amount borrowed.
What is interest?
400
The maximum dollar amount that can be charged on a credit card.
What is a credit limit?
400
Charged when payment is not made by the due date.
What is a late payment fee?
400
Paying the credit card balance in full every month.
What is the only way to avoid paying interest.
400
Total cost of credit, including interest and fees.
What should be considered before borrowing money or opening a charge account?
500
The total amount of money borrowed before interest is added in.
What is principal?
500
An item of value you will give to the creditor as repayment.
What is collateral?
500
A person who agrees to be equally responsible for the money you owe.
What is a cosigner?
500
Check for mistakes, Notice any false charges, Identity Theft, and Make sure your records match the credit card companies records.
What are reasons it is important to examine a credit card statement?>