Credit Cards
Flashcard
•
Life Skills
•
12th Grade
•
Practice Problem
•
Hard
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17 questions
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1.
FLASHCARD QUESTION
Front
What is one advantage of having a credit card?
Back
It allows you to make purchases without carrying lots of cash.
2.
FLASHCARD QUESTION
Front
What happens when you don't have enough money to pay for the things you charged?
Back
You end up owing more than the original amount of money you charged.
3.
FLASHCARD QUESTION
Front
Why would your credit provider give you a credit limit?
Back
To prevent you from spending more money than you can pay back.
4.
FLASHCARD QUESTION
Front
When you make a credit card purchase at a store, who do you agree to pay?
Back
Your credit provider.
5.
FLASHCARD QUESTION
Front
How do credit card companies make money?
Back
By charging late fees and interest to their customers.
6.
FLASHCARD QUESTION
Front
How is charging a purchase like getting a loan?
Back
You borrow money from your credit provider.
7.
FLASHCARD QUESTION
Front
The cost of credit expressed as a yearly interest rate is known as:
Back
Annual Percentage Rate (APR)
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