6.03
6.03
6.03
6.03
6.03
100
When someone has passed an initial credit history check
Pre-approved
100
The APR charged during the credit card's introductory period after a credit card account is opened
Introductory rate
100
A yearly fee that may be charged for having a credit card
Annual fee
100
How can you avoid paying interest on a credit card?
pay the balance in full every month
100
You should NEVER do this with a credit card
charge more than you can payback
200
Fee charged if the cardholder makes a payment but does not have enough money in that account to cover the payment
Returned payment fee
200
Maximum dollar amount that can be borrowed
Credit limit
200
Sarah will turn 18 next month. She plans to apply for a credit card. Which statement is true? A Sarah cannot obtain a credit card until she turns 21. B Sarah will need to use a special application since she is under 25. C Sarah can only obtain a credit card if she has a co‐signer or proof of sufficient income to make the required payments. D Sarah can obtain a credit card by filling out an application as long as she waits until after her 18th birthday.
C, Sarah can only obtain a credit card if she has a co‐signer or proof of sufficient income to make the required payments.
200
What should you do if you apply for a credit card and get approved?
review the final credit terms offered
200
Terms and fees of a credit card in an easy to read box on all credit card applications and solicitations
Schumer Box
300
The interest rate charged on new transactions if the penalty terms in the credit card contract are triggered
Penalty APR
300
Plastic card that you can use to access a line of credit that has been established in advance
Credit card
300
Paying the minimum payment on a credit card every month will: A pay a large percentage of the total balance owed every month. B make the final amount paid substantially higher than the amount initially charged to the card. C help the cardholder create a plan for paying off a credit card in a decent amount of time. D allow the cardholder to avoid paying any interest charges.
B, make the final amount paid substantially higher than the amount initially charged to the card.
300
A credit card statement outline should be checked carefully for?
Errors
300
True or False: skipping a credit card payment won't hurt anything?
False. The company could charge additional late fees as well as increase your interest rate.
400
Fee charged if the credit card account balance goes over the set credit limit
Over-the-limit fee
400
Act of transferring debt from one credit card account to another
Balance transfers
400
Megan’s credit card statement indicates that she is now paying a penalty APR. Which scenario best describes why? A Megan missed making her January and February credit card payments while she was participating in her college’s Study Abroad program when the friend she left in charge of sending the payments in forgot. B Megan’s credit card payment has been paid in full each of the last 6 months. C Megan’s card had a lower introductory interest rate for the first year and now the interest rate has increased, as stated on her contract. D The new computer Megan purchased made her account go over the credit limit for 1 week, until the credit card company processed her credit card statement.
A, Megan missed making her January and February credit card payments while she was participating in her college’s Study Abroad program when the friend she left in charge of sending the payments in forgot.
400
Not paying your credit card can lead to?
Terrible debt!!!!!!
400
Mr. Reed accidentally posted a picture of his credit card on his snapchat story. What should he do immediately?
Delete the picture and call and have the card cancelled. Posting picture of your credit cards can help people steal your identity and your money.
500
Fee charged when a credit card holder does not make the minimum monthly payment by the due date
Late Payment fee
500
Cost of credit expressed as a yearly interest rate
Annual percentage rate (APR)
500
Tyler is trying to be responsible in using his new credit card and has heard there is a way to avoid paying interest on the things he charges. How can he legally avoid paying interest when using his credit card? A Tyler needs to make sure he pays the minimum balance every month before the due date on the credit card statement. B Tyler needs to pay the credit card balance in full every month before the due date listed on the credit card statement. C Tyler needs to limit the use of his credit cards to balance transfers only. D Tyler needs to understand that the use of a credit card requires paying interest. There is not a legal way for him to avoid paying interest if he uses his card during the billing cycle.
B, Tyler needs to pay the credit card balance in full every month before the due date listed on the credit card statement.
500
To get a credit card you must?
Be 21 or have a co-signer or have proof of sufficient income to make payments
500
An APR that may change depending on other factors
Variable-rate APR
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