Credit review

Front

What is the difference between installment loans and revolving credit?

Back

Installment loans payments are all equal; revolving loan payments are not.

Front

The APR tells you:

Back

the rate of interest being charged

Front

What is collateral?

Back

property used to back a loan

Front

Which of the following describes an annual fee? Options: maximum amount that can be charged on a credit card, moving money from one credit card to another, receiving cash from a credit card company instead of making a purchase, once per year charge for having a credit card

Back

once per year charge for having a credit card

Front

Which of the following describes a grace period? Options: maximum amount that can be charged on a credit card, amount of time before interest is charged on a credit card, receiving cash from a credit card company instead of making a purchase, once per year charge for having a credit card

Back

amount of time before interest is charged on a credit card

Front

Which of the following describes a balance transfer? maximum amount that can be charged on a credit card, moving money from one credit card to another, receiving cash from a credit card company instead of making a purchase, once per year charge for having a credit card

Back

moving money from one credit card to another

Front

Which of the following describes a cash advance? Options: maximum amount that can be charged on a credit card, amount of time before interest is charged on a credit card, receiving cash from a credit card company instead of making a purchase, once per year charge for having a credit card

Back

receiving cash from a credit card company instead of making a purchase

Front

If you use a credit card, how often must you make payments?

Back

once a month

Front

How can you avoid the minimum payment trap with credit cards?

Back

Always pay more than the minimum payment required.