Credit Cards
A plastic card that you can use to access a line of credit that has been established in advance
A credit card
A summary of a consumer’s credit history is called a
Credit Report
A mathematical number created to help evaluate the risk with lending a consumer money
Credit score
How can a cardholder avoid paying interest on a credit card?
Pay the balance in full every month
What is the most popular ice cream flavor?
Vanilla
Credit card issuers are required to disclose the terms of a credit card offer in an easy to read box called a ..
Schumer Box
Type of credit where a borrower repays a specified number of equal payments (car loans, mortgages, etc.)
Closed - end credit (installment)
What is the most eaten food in America?
Mashed Potatoes
What is the penalty APR?
The interest rate charged on new transactions if the penalty terms in the credit card contract are triggered
What is an advantage to getting a credit card?
Good for emergencies when you need money, good for building a credit score or history, etc.
If someone no longer wants to use their credit card, what should they do with the card?
Close the account and cut up the card
Line of credit established in advance (credit cards), and will continually be provided to you as you pay it back
Open-end credit (revolving)
A low credit score will affect an individual financially when borrowing money because ...
(higher interest rates of loans, higher monthly payments, difficulty borrowing)
What is a balance transfer?
Transferring money from one debt to another
When internet scam artists use either pop-up messages or emails to lure consumers into giving personal information this is called:
Phishing
How many children does Oprah have?
Describe what is included on the inquiry information section of a credit report
Credit applications, requests to view or give out credit report
What would the impact on a credit score / history be if you applied for many credit cards within a short period of time?
Negative
If an individual agrees to be a co-signer, how is their credit report affected by the positive or negative use of that account?
Could both improve & harm a credit report because the co-signer’s credit report will reflect the use of the credit account
The “s” in “https” on a web browser stands for what?
Secure
If a credit card is stolen and used fraudulently, how much will you be liable for?
If reported within 2 days, $50
When may a person view their credit report for free?
Once a year, from each of the three main credit reporting agencies
What information is included when calculating a credit score?
Payment history, outstanding debt, pursuit of new credit (not medical history, not salary)
What is the tallest dog breed in the world?
Great Dane
When reviewing a credit card statement, what is the past due amount?
The minimum payment due not paid by the due date