credit card review

Front

What is the interest rate of the American Express credit card in the given scenario?

Back

15.99%

Front

What is the interest rate of the Chase Sapphire credit card in the given scenario?

Back

20.99%

Front

If you charge $500 on two credit cards and make a minimum payment of $25, which card will incur more interest?

Back

Chase Sapphire

Front

What factors contribute to your creditworthiness?

Back

Credit history, payment history, credit utilization, and all answers are correct.

Front

What is the most common credit scoring system?

Back

FICO

Front

How do credit card companies primarily make money?

Back

By charging late fees and interest to their customers.

Front

What is a credit limit?

Back

The maximum amount of credit that a lender will extend to a borrower.

Front

Why do credit providers set a credit limit for customers?

Back

To prevent customers from spending more money than they can pay back.

Front

What is the impact of making only minimum payments on credit cards?

Back

It leads to higher interest charges and longer repayment periods.

Front

What is the formula for calculating interest on a credit card balance?

Back

Interest = Principal x Rate x Time.