Psychology of
Credit Cards
Credit Cards
This is the maximum amount of money you can borrow on a credit card.
What is a credit limit?
This is money borrowed to pay for education that is generally repaid with interest.
What are student loans?
This is the amount of money you earn before any taxes or deductions are taken out.
What is gross pay?
This is money set aside specifically for unexpected expenses.
What is an emergency fund?
This type of scam involves fake websites or sellers taking your money without delivering products.
What is an online shopping scam?
This term refers to the annual interest rate charged on a credit card balance.
What is APR?
What are tuition, housing, and books? (Any three listed expenses.)
These are three common college expenses that student loans can help cover.
This is the money you actually receive after all deductions have been made.
What is net pay?
According to the presentation, this type of purchase is considered a non-emergency: buying concert tickets, a new game, or this item.
What is a new phone?
These are two warning signs of an online shopping scam mentioned in the presentation.
What are products that don't arrive and selling fake brands?
This is the amount owed on your credit card statement.
What is the statement balance?
Unlike loans, these two types of college financial aid usually do not need to be repaid.
What are scholarships and grants?
These two payroll taxes are commonly grouped together under FICA.
What are Social Security and Medicare?
This is the recommended place to keep an emergency fund because it is separate from checking, accessible, and may earn interest.
What is a savings account?
This government aid scam uses devices on card readers to steal card information.
What is EBT skimming?
According to the presentation, these two factors make up 65% of a FICO score.
What are Payment History (35%) and Amounts Owed (30%)?
This form is used to apply for federal student aid.
What is the FAFSA?
On a pay stub, this section shows taxes, insurance, and benefits that were taken from your earnings.
What is the deductions section?
Many adults strive to save this amount of essential living expenses in their emergency fund.
What is 3–6 months of essential living expenses?
In this scam, criminals pretend to work for companies like Microsoft or Apple to gain access to your computer or money.
What is a tech support scam?
Credit card companies use this score to assess whether you're a credit risk and determine how high your credit limit should be.
What is a FICO score?
You borrow $10,000 with a 5% interest rate. This is the reason you will repay more than the original $10,000.
What is interest, the cost of borrowing money?
An employee earns $1,000 in gross pay and has total deductions of $211.50. This is the amount of their net pay.
What is $788.50?
If you save $20 per week for a year and make no withdrawals, this is how much money you will have saved.
What is $1,040?
A scammer claims you're owed thousands of dollars from the government and asks for personal information.
What is a government assistance scam (or government imposter scam)?