3.5 Credit Card Vocab

Front

Avg. amount owed daily during billing period.

Back

Average Daily Balance

Front

Similar to an electronic check with no finance charge.

Back

Debit Card

Front

Buying something unplanned.

Back

Impulse Buying

Front

Not responsible for charges after reporting card lost/stolen.

Back

Truth-in-Lending Act

Front

Plastic card for purchases with deferred payment and interest.

Back

Credit Card

Front

Account with min payment & finance charge, not paid in full monthly.

Back

Revolving Charge Account

Front

Paying off your balance before the next billing cycle means no interest is charged.

Back

True

Front

Finance charge calculation on credit card: Divide APR by

Back

12

Front

Using 1.324% in calculations:

Back

0.01324

Front

Not an advantage of a credit card:

Back

No interest charge