Credit Cards
This is at least two benefits for opening a credit card.
What is building a higher credit score, gaining cash back and other benefits, being able to take out higher loans, with lower interest rates, depending on credit behavior.
A credit score in this range would be considered poor or very bad! Or, give me a credit score that would fall within this range.
What is 300-579?
This is the amount of credit you have spent with your credit card in your current billing cycle.
What is current balance? Current statement balance?
Your grandma gets a call from her bank asking for her social security number over the phone. When asked if she can call back later, the bank says that they need it now to regain access to her account. She should...
(bonus 100 points if you can come up with a two step solution.
What is not give her social security number out over the phone,
call back the number actually associated with her bank, not this number report the call, lock or freeze her credit card etc.
This is an example of identity theft.
What is.....
This is at least two dangers of using a credit card irresponsibly.
Building up credit card debt, tanking your credit score, having to eventually pay much higher in interest rates for bad credit behavior, losing assets, defaulting on payments, etc.
This is the risk that a co-signer can take by vouching for a new credit card user.
What is, having to pay off their debt, assuming the risk to their credit score if their user misses payments or takes on too much credit, etc.?
This is the amount of credit you have to pay off now, which was from your last billing cycle.
What is, statement balance?
Mandy Ain'tmakingthatmoney is considering opening up a new credit card to pay off the debt from her old one.
This is, one reason you could give to convince her this is not a long term solution to paying off debt.
What is, she is just moving her debt to a new account, not actually paying off her debt permanently, etc.
This is something phishers might say to you to convince you to give them important financial information over the phone, rather than wait till later.
What is, "Act quickly," "This won't last forever," "Big money fast," etc.
This is one way to get out of credit card debt overtime.
What is, to stop spending on that credit card, and make monthly payments on it.
This is something that could positively impact your credit score.
What is, making payments on time? Staying below the 30% spending, etc.?
This is the set term of time (decided by your credit card company), where your spending is tracked and you are then expected to pay back at the end of said period.
This is the official name for that period of time.
What is, billing cycle?
Frankie Nofinancialeducationsadface doesn't think their credit score will effect them when they apply for a car loan.
This is, one reason that a good credit score could end up saving Frankie money in the long run.
What is, higher credit score equals lower interest rates on loans?
This is one way you can tell a scam is too good to be true.
What is... high reward, little risk.
Little work, big money
If a credit card has an APR of 12 % and you have a remaining statement balance of $100 that you carry over into the next billing cycle, how much in interest are you paying?
$1 dollar,
Divide the APR by 12 - 1
Find 1 % of 100 = 1
This is something that would have a negative impact on your credit score.
What is, missing a credit card payment, opening multiple lines of credit in a short period of time, taking out a major loan, spending over 30% o your credit line, not paying the minimum balance, etc.
This is the amount of money you must at least pay to avoid major penalties from your credit card company when your statement balance is due.
what is minimum payment / balance?
This is the number of major credit bureaus that calculate your FICO credit score. (not really financial advice but good to know!)
100 extra points for each organization you name.
This is 3 and the names are
Experian, Equifax, and TransUnion
This is one difference between tax evasion and tax negligence.
What is, acting with or without intent, etc.?
Rank the three credit card payment dilemmas in order of most negative consequential to least negative consequential:
- Not paying the minimum balance,
- not paying the full statement balance,
- Only paying the minimum balance.
Most negative:
1. not paying minimum balance
2. Only paying the minimum balance
3. Not paying the full statement balance.
What is the percentage of your credit line you should shoot to be below at the end of each billing cycle?
What is 30%?
This is the set maximum amount of money the bank will pay for your purchases during a billing cycle. If you go over this amount, you can incure heavy financial fees and penalties.
What is credit line?
These are three things your friend Billy Beenspending can do to boost his credit score of 500. Assume he has credit card debt, only 1 credit card, and is not making any income currently.
What is - get a job, start paying off debt, make higher than minimum payments, don't add more debt to that credit card, etc.?
This is the financial scheme that requires you to recruit new members for their money, with the intent to sell some type of product or service that doesn't actually exist.
What is a pyramid scheme, or Ponzi scheme, I'll take either?