Credit Card Basics
The cost of borrowing money.
What is interest?
To avoid scams and bad rates.
Why should you research credit cards.
"Do I need this?"
What question should you ask before buying something?
A three digit number that measures credit risk.
What is a FICO score?
Nerdwallet or Credit Karma.
What is one website teens can use to compare credit cards?
Annual Percentage Rate.
What does APR stand for?
They usually have high interest rates.
Why should you be careful of "easy credit" offers.
Gas and groceries.
What is an ideal purchase for credit card?
It affects loans, housing, and interest rates.
Why is building credit important?
Secured or student cards.
What type of credit card is best for beginners?
Annual Fee and cash advance fee.
What are two fees in a credit card agreement?
A security code on a credit/debit card.
What is a CVV code?
Expensive items you don't need.
What is a unnecessary purchase?
Experian, Equifax, TransUnion.
What are the three credit buereaus?
Builds credit history and score.
What is a benefit to owning a credit card?
Time to pay before interest is changed.
What is grace period?
Report your card lost to bank.
What should you do if your credit card is lost or stolen?
Late fees and credit score damage.
What happens if you miss a monthly payment?
To find errors or fraud.
Why should you check your credit card statement?
Debit uses your money, credit borrows money
What's the difference between a debit and credit card?
Pay the full balance on time each month.
How do you avoid paying interest?
No, you're responsible for all charges.
Should you let your friends use your credit card, why or why not?
Collections or lawsuits.
What legal trouble can unpaid credit card debt cause?
What should you do if your interest rate increases unexpectedly.
Credit mistakes last for years.
What is one thing high school students should know before opening a card?