Credit Card Flashcard

Front

What does APR stand for? Options: Annual Point Ratio, A Percent Rate, Annually Percentage Ratio

Back

Annual Percentage Rate

Front

A high FICO score means you have better credit than someone with a low FICO score.

Back

True

Front

The least amount that must be paid on a credit card each month is

Back

Minimum Payment

Front

How can a cardholder avoid paying interest on a credit card?

Back

Pay the balance in full every month

Front

Grace Period - The time allowed to pay your balance without being charged a finance charge. Usually 25 to 30 days.

Back

True

Front

The rule of thumb for credit card users is not to carry a balance over 30% of your credit limit.

Back

True

Front

Parents may add a child who is under 21 as an authorized user to an existing credit card.

Back

True

Front

According to the U.S. Federal Reserve, 46% of American adults have an outstanding balance on their credit cards.

Back

Correct

Front

Credit cards can help you build a credit history that will improve your chances of getting house or car loans in the future.

Back

True

Front

The three major institutions that keep credit records on individuals and businesses are _____, ______, and ______.

Back

Equifax, Experian, Trans Union