Debit Cards
This card is paired with what account
checking account
what is a type of prepaid card?
Gift card
What is a credit card?
A credit card allows you to borrow money to buy things.
what are FICO scores
A way to help lenders determine the credit risk associated with loaning you money.
What is the annual percentage rate on the card?
The APRs listed are for purchases
what is a debit card
A debit card is a payment card that deducts money directly from a consumer’s checking account to pay for a purchase.
can a prepaid card help build up credit?
no
How do banks get all this money to lend out to consumers?
From their client's savings accounts.
how do you keep your score strong?
1. Complete credit applications carefully and accurately.
2. Use your credit cards responsibly - don't let them reach their limit or spend beyond your means.
3. Choose your credit cards wisely and make sure you understand all of the terms and features.
4. Attempt to pay your credit card balance in full each month, but at least make the minimum payment by the due date.
5. Always pay bills on time.
6. If you have problems paying your bills, contact your creditors. In many cases, they will work with you to figure out a payment plan.
7. If you move, let your creditors know your new address as soon as possible to avoid losing bills or receiving them late.
8. If your credit card is lost or stolen, report it to the issuer immediately.
9. Check your credit reports periodically for inaccuracies and immediately report errors to resolve any issues.
10. Establish a consistent work history.
Not managing your credit wisely can lead to
Increased interest rates (APRs)
Penalty fees
A decline in your credit score
Denials of future credit
what is an example of a financial institution
A bank
who should be using prepaid cards?
anyone can use a prepaid card
How do banks make money off of credit cards?
They charge a high-interest rate on the loan.
what is a good fico score?
A score in the range of 750 to 850 is considered to be excellent
Is this a Reward Card?
they are cards that offer you reward when you use miles, cash, etc.
what is another name for a debit card?
a check card
where can you purchase a prepaid card?
virtually anywhere you can purchase a gift card
What are some benefits of using credit card?
1.) Instant Purchasing Power
2.) Security
how do they determine your FICO score
your payment history
amount of money you owe
length of your credit history
the number of recently opened credit accounts.
What is fixed rate card?
A fixed-rate card's interest rate can't change with the prime rate in the first year
What are some potential fees when using a debit card?
ATM transaction and overdraft charges.
what are the main prepaid cards?
Visa, MasterCard, American Express and Discover
how do you manage your credit card account
Follow the “20-10” rule
what are the three main credit bureaus
Experian, TransUnion, and Equifax
What are cashback reward cards
Cashback is essentially a rebate of a percentage of the purchases you make on the card