Terminology
Schumer Box
Credit Cards
Credit History
Credit Card Knowledge
100
A yearly fee that may be charged for having a credit card.
What is an annual fee?
100
The cost of credit expressed as a yearly interest rate.
What is the annual percentage rate (APR)?
100
By paying the balance in full each month, a consumer can avoid what?
What is paying interest on a credit card?
100
An individual’s ability and willingness to pay money back.
What is creditworthiness?
100
Outlines important information about a credit card, including transactions the cardholder has made during that billing cycle and the current balance on the credit card.
What is a credit card statement?
200
When a consumer has passed an initial credit check.
What is pre-approved?
200
Transferring debt from one credit card account to another.
What is a balance transfer?
200
The minimum payment due but not paid by the due date.
What is the past due amount?
200
A record of a consumer’s credit history.
What is credit report?
200
The cardholder’s liability for unauthorized credit card charges under the Truth in Lending Act.
What is $50.00?
300
A loan which the borrower must repay the amount in a specified number of equal payments.
What is closed-end credit?
300
The interest rate charged right after a credit card account is opened.
What is introductory rate?
300
A summary of a consumer's credit accounts and payments on those account.
What is a credit report?
300
A number that summarizes an individual’s credit record and history.
What is a credit score?
300
The maximum amount of charges allowed to the account.
What is the credit limit?
400
A plastic card that is electronically connected to the cardholder’s bank account.
What is a debit card?
400
The interest rate charged on new transactions if the penalty terms in the credit card contract are triggered.
What is penalty APR?
400
Best place for a consumer to acquire his/her credit repot.
What is a credit reporting agency?
400
An example of positive credit card use.
What is: Paying card balances in full every month Paying card bills on time Applying for only cards that are needed Keeping track of all charges Checking monthly card statement for errors
400
To increase credit card safety, the back of the card should include the cardholder’s signature and this.
What is “Please see ID?”
500
Answer: An APR that may change depending on other factors, such as the prime rate.
What is variable-rate APR?
500
The terms and conditions of credit in the Schumer Box came about because of what?
What is the Federal Truth in Lending Act?
500
Which is NOT considered an advantage to using a credit card: - credit cards eliminate the need for savings - credit cards are useful for emergencies - credit cards are often requireed to hold a reservation - credit cards offer protection against fraud
What is credit cards eliminate the needs for savings.
500
Which is NOT included in an individual's credit report? - current and past addresses - employment history - bankruptcies and foreclosures - medical information
What is medical information?
500
A consumer will develop a positive credit history if they: - maintain reasonable amounts of unused credt - pay phone and utility bills on time - pay cash for the majority of purchases - open credit account in their parents' names
What is maintain reasonable amounts of unused credit?
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