Story Details
Credit Card Facts
Vocabulary
Cause & Effect
Main Idea & Analysis
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100
Who is the college student featured in the article?
Sanyika Galloway Boyce.
100
What is credit?
Money borrowed temporarily that must be repaid with interest.
100
What does the word debt mean?
Money that someone owes and must repay.
100
What happens when you borrow money using a credit card?
You must repay the money you borrowed.
100
What is the main idea of the article?
Using credit cards responsibly and understanding the risks of debt.
200
What was the credit limit on Boyce's first credit card?
$500
200
In what year were credit cards first created?
1950
200
What does interest mean when discussing credit cards?
Extra money charged for borrowing money.
200
What are two things that can happen if you make a late credit card payment?
You may be charged late fees and your credit score may decrease.
200
Why does the author share Boyce's experience?
To provide a real-life example of how credit card debt can grow and create financial problems.
300
What was the first emergency Boyce paid for with her credit card?
Her boyfriend's car broke down, costing $256
300
Name three smart uses of credit mentioned in the article.
Buying a home, purchasing a car, starting a business, or obtaining a student loan.
300
What is a minimum payment?
The smallest required payment toward a credit card bill.
300
Why did Boyce end up owing more than $5,000?
She obtained more credit cards and used them for purchases she could not afford to pay for in cash.
300
What does the advice 'If you can eat it, drink it, or wear it, pay cash or don't buy it' mean?
Avoid borrowing money for everyday purchases; use money (the cash) you already have.
400
How many credit cards did Boyce have within one year?
Five credit cards
400
What happens when you pay only the minimum amount on your credit card bill?
You pay interest on the remaining balance, so repayment takes longer and costs more.
400
What is a credit score?
A number used to evaluate how responsibly a person manages and repays credit.
400
Why might a landlord check someone's credit report?
To determine whether the person is likely to pay rent on time.
400
What is the author's main message about credit cards?
Credit cards can be useful, but people must understand borrowing, interest, and repayment to avoid financial problems.
500
How much money did Boyce owe within one year, and how did it affect her?
More than $5,000. Her part-time job earnings went toward payments, leaving her broke.
500
According to the article, how long would it take to pay off a $1,000 balance at 21% interest by paying $23 per month? How much would you end up paying at the end?
83 months (almost seven years), with a total cost of $1,897.
500
In the article, what does the word evaluate mean when describing what banks do?
To judge or assess how responsibly someone manages money and makes payments.
500
Explain two consequences of having poor credit.
Possible answers: difficulty renting an apartment, losing a job opportunity, paying extra fees, or having trouble obtaining credit.
500
According to the graph on page 5, which year had the highest average household credit card debt, and what does the graph show about the change from 2020 to 2022?
2022 had the highest debt at $7,951. Average debt increased from $6,612 in 2020 to $7,951 in 2022.