Vocabulary
The amount owed on a credit card at any given time.
Balance
When you use your card responsibly your ________ will increase over time.
Credit Score
What is the most important factor in building a good credit score?
Paying your bills on time
Credit
This is the yearly interest rate you'll pay if you don't pay your balance by the end of the grace period.
Credit card companies use _______ to market their products and entice customers to spend more money than they can afford.
Credit Card Rewards
Why do we never want to close (or cancel) a credit card?
To allow for your credit history (reputation) to continue building.
Francesca buys a TV from Wal-Mart because her old one broke. She uses her card and is required to enter a PIN at the register.
Debit
This is the maximum amount of money you can borrow using your card.
Credit Limit or Credit Access Line
What card offers more fraud protection when making online purchases?
Credit Cards
What are the four most common examples that fall within your 'Credit Mix'?
- Credit Cards
- Mortgages (Home Loans)
- Car Loans
- Student Loans
Credit card
The amount of time you have to pay off your purchases before owing interest.
Grace Period
When you spend more than you can afford on a credit card, you are likely to go into _____________.
Debt
What are the agencies called that calculate our credit score?
Credit Bureaus.
- Equifax
- Transunion
- Experian
Nico is hoping to buy plane tickets for a trip this summer. He uses a card that allows him to earn airline miles for each of his purchases.
Credit
This is the total amount of money you owe each month for using your card. This can include interest, annual fees, late fees, and more.
Finance Charge
Credit Score
Between what two numbers are credit scores used?
300 - 850
300 being the worst, 850 being the best.
Filip purchased a gift for a friend using his card. Unfortunately, he forgot to pay his bill and now owes a late fee.
Credit