Key terms
The yearly interest rate charged on outstanding credit card balances.
APR
Whats the three choosing cards?
Credit card, debit card, and prepaid card
Whats number 1?
Complete credit applications carefully and accurately.
Don't be tempted to make purchases you can't afford. - Use credit card cash advances for emergency needs only.
Stick to your budget
A penalty charged by your credit card company for not paying your bill on time.
Late Payment fee
The once-a-year cost of owning a credit card. Some credit card providers offer cards with no annual fees.
Annual Fee
whats the score range for FICO score?
300-850
Whats number 3?
Choose your credit cards wisely and make sure you understand all of the terms and features.
- Paying at least the minimum monthly payment by or before the due date will keep your credit in good standing.
- Try to pay more than the minimum due or even the entire balance each month to stay out of debt and avoid paying interest.
Be a good credit customer
Any fee representing the cost of credit, or the cost of borrowing. It is interest accrued on, and fees charged for, some forms of credit. It includes not only interest but other charges as well, such as financial transaction fees.
Finance Charge
An amount of money. In personal banking, balance refers to the amount of money in a savings or checking account. In credit, balance refers to the amount of money owed.
Balance
Whats the three credit bureaus?
Equifax, Experian, and TransUnion.
Whats number 5?
Always pay bills on time.
- Limit your credit card debt to less than 20% of your total annual income
- Less than 10% of your net monthly income should go toward paying credit card debt. If it is more, reevaluate your spending habits.
Follow the "20-10" rule
A fee assessed on the date a new cash advance transaction is posted to an account. If your spending habits include accessing accounts for cash, you want to avoid this kind of fee or look for the lowest one possible.
Cash Advance Transaction Finance Charge
The maximum dollar amount that can be charged on a specific credit card account.
Credit Line
Whats a prepaid card?
A prepaid card is a card you can use to pay for things.
whats number 2?
Use your credit cards responsibly - don't let them reach their limit or spend beyond your means.
- Ensures you don't spend beyond your credit limit.
- Helps you to stay on budget. - Alerts you if unauthorized or fraudulent charges appear or if billing errors have been made.
Review your monthly statements
The period of time between the billing statement date and the date full payment must be received before interest is charged on your account balance and new purchases.
Grace Period
A reporting agency that collects information on consumer credit usage. There are currently three main credit bureaus in the United States: Equifax, Experian, and TransUnion.
Credit Bureau
whats another word for debit card?
checking card
Whats number 4?
Attempt to pay your credit card balance in full each month, but at least make the minimum payment by the due date.
- Regularly view all account activity and payment history to spot errors or fraud.
- Sign up for automatic credit card payments or set up a payment ahead of time before it's due.
Take advantage of secure online access to both your credit card and debit card accounts
The minimum amount of money that you are required to pay on your credit card statement each month in order to keep the account in good standing.
Minimum Monthly Payment