Debit Cards
A debit card pulls money directly from where?
Your checking account.
What is the maximum amount of money you can borrow with a credit card called?
Credit limit.
What is the typical range for credit scores in the U.S.?
300–850.
What’s safer than carrying cash but doesn’t charge interest?
Debit card
What should you do first if your debit card is lost or stolen?
Call the bank and cancel it immediately
If you have $10 and spend $20 with overdraft, what happens?
You owe the $10 plus a fee
If you don’t pay your full credit card bill, what do you pay extra?
Interest.
Which affects your score more: income or paying bills on time?
Paying bills on time.
You want to buy something now but pay it back later. Which should you use?
Credit card
What does APR stand for on a credit card?
Annual Percentage Rate.
What’s one place that may not accept debit cards for reservations?
Hotels or rental car companies.
Give one situation when using a credit card is better than debit.
Emergencies, online shopping, renting a car/hotel.
If Aiden maxes out his credit card and misses 2 payments, what score range is likely?
400–500
Why should you avoid using a credit card for gum or fast food?
Small charges can lead to debt if unpaid and don’t need credit benefits.
If Logan forgets to pay his phone bill for 3 months, what happens to his score?
It drops into the 550–600 range.
Why doesn’t using a debit card help build credit?
It doesn’t show borrowing history to credit bureaus.
Why is carrying a balance dangerous over time?
Interest grows and debt builds quickly.
Why does opening a lot of new credit cards hurt your score?
It lowers your average account age and adds hard inquiries.
What is one major risk of cash advances on a credit card?
Very high interest and fees.
Why is it important to check your credit report regularly?
To catch mistakes or fraud that could hurt your score.
What’s a smart safety step when shopping online with debit?
Use secure websites and monitor your account often.
What should you avoid doing with your credit card according to the lesson?
Using it for small daily items, impulse buys, or loaning it to others.
Sofia always pays off her card and borrows responsibly. What score range fits her?
800+
Which is a better habit: using less than 20% of your credit limit or 90%? Why?
Less than 20% — keeps utilization low and improves your score.
What’s the best way to completely avoid credit card interest?
Pay the full balance each month.