vocabulary
Marcus applied for a ___________________________ to pay for his college tuition and will have 10 years to repay it.
loan
How much is currently owed on this credit card?
$245
What is the key difference between a credit card and a debit card?
Credit cards allow you to borrow money to pay for things, while debit cards take money straight from your own checking account
A person who has permission to use and/or carry another person's credit card, but isn't legally responsible for paying the bill
Authorized User
Original amount of money saved or invested, separate from interest or earnings
Principal
When Priya couldn't pay off her credit card in full, the ___________________________ meant she had to pay interest on the remaining amount.
balance
Look at the Transactions section. Why is the refund marked with a negative sign?
You are receiving that money back onto your credit card statement so it’s deducted from what you owe
Kervin really wants to buy a new bike because his old one is too small now. He's trying to decide if he should use his debit card or credit card. What's one reason he should be careful about using credit?
Credit will charge him interest every month until he repays his full balance
Someone who legally agrees to take responsibility for a person's debt if they cannot repay it
Cosigner
A schedule for how you will pay back money you owe, including the amount and due dates for each payment
Repayment Plan
If you only pay the ___________________________, you may never fully pay off your debt because interest keeps adding up.
minimum payment
Before sending in your payment to the credit card company, you go to a bicycle store. How much can you spend before going over the credit limit on your card?
$755
Anita is under 18 and wants to get a credit card. What should she do?
Be added as an authorized user on her mom’s credit card, co- signer, start paying student loans, get a secured credit card
The ability to borrow money or access goods and services now, with the agreement to pay later, often with interest
Credit
A fee paid to you for keeping your money in an account OR a fee charged to you for a loan or credit card
Interest
The ___________________________ requires a security deposit upfront, making it a good choice for someone just starting to build credit.
secured credit card
What is the late payment fee?
$35
Miguel's parents keep telling him he should worry about his credit score. He says, "Why bother?" Why should Miguel care?
A high credit score will make it easier for him to get loans or credit cards with better interest rates
A monthly summary that shows all the purchases, payments, interest, and fees on your credit card account.
Credit Card Statement
A three-digit number (ranging from 300-850) based on an individual's credit history detailed in a credit report
Credit Score
The ___________________________ of the loan was only 3 years, so Mike would be debt-free soon after making regular payments.
loan term
What is the payment due date?
June 23, 2025
Julie is applying for an auto loan. Why is her credit score important?
Her credit score affects the interest rate she will pay on the loan
A card that is directly connected to your checking account; it enables you to conduct ATM transactions and to make purchases instead of using cash or writing a check
Debit Card
A plastic card that allows you to make purchases now with borrowed money, which then you must repay to the lender in one lump sum or in monthly payments with interest
Credit Card