Credit
What is the main difference between a credit card and a debit card?
Credit cards let you borrow money
Which of these purchases suggests the use of a debit card?
A) Jade withdrew $100 from an ATM
B) Devon is building her credit score
C) Fillip paid a late fee after forgetting to pay his bill
D) Weston didn’t have enough funds and now pays interest
A
What is one risk of only paying the minimum balance?
You stay in debt longer and pay more interest
What is one sign of identity theft?
Unknown accounts or charges
What happens if you only make the minimum payment on your credit card?
You remain in debt longer
What is the purpose of a Schumer Box?
To compare credit card costs and fees
What information is typically included in a Schumer Box?
Interest rates and fees
In the film Catch Me If You Can, what skill did Frank Abagnale use most?
Deception and forgery
Devon uses her card carefully, paying the full bill each month to build a credit history. What is her likely goal?
Qualifying for a better loan rate later
One benefit of having a credit card is
It can help build credit when used responsibly
Which is a responsible way to use a credit card?
Paying off your balance in full monthly
Frank Abagnale’s crime career is best described as:
Identity theft and check forgery
Which of the following terms refers to the total amount owed on a credit card at any moment
Balance
What is a "grace period" in credit card use?
Time before interest is charged on purchases
What does your credit score represent?
How likely you are to repay loans
One consequence of identity theft is:
Damage to your credit and reputation
The Annual Percentage Rate (APR) tells you:
The yearly interest rate charged on unpaid balances
Why do credit card companies charge interest?
To earn profit on borrowed money
What can lower your credit score?
High credit utilization
Which best describes the connection between credit cards and identity theft?
Stolen information can be used to open fake accounts