Key Words
A plastic card that is electronically connected to the cardholder's bank account.
debit card
The cost of credit expressed as a yearly interest rate.
What is the annual percentage rate (APR)?
Ongoing documentation of an individual's repayment of their debts
Credit Report History
What is a credit card?
A plastic card that holds pre-approved credit which can be used for the purchase of items now and payment of them later.
A yearly fee that may be charged for having a credit card.
annual fee
The number you are rated for paying on time and keeping a good credit history.
Credit Score
What Are the Benefits of a Good Credit Score?
True/False Paying the minimum payment is the best way to pay for credit card debt
False
Maximum amount of money a lender will allow a consumer to spend using a credit card
Credit Limit
The smallest amount of money that you have to pay each month to keep your account in good standing.
minimum payment
A program offered by credit cards that give the consumer points, cash or discounts on purchases.
rewards program
A snapshot of all the expenses and payments that were made to your account during one billing cycle.
Statement
is the interval of time between billing statements
Billing cycle
What are some advantages of using a credit card?
convenient useful for emergencies often required to hold a reservation purchase expensive items possibility of reviving bonuses, such as frequent flyer miles anc cash rebates
When a consumer applies and has passed an initial credit check.
pre-approved
A charge imposed on a consumer who fails to make the payment on a debt or other financial obligation by the due date
Late payment fee
What are two results of not using credit cards properly?
negative credit history, and a lower credit score
True/False-it is good to be a co-signer on a credit card
True