Credit Card Statement Worksheet

Front

What is a credit card statement?

Back

A credit card statement is a monthly report provided by a credit card issuer that summarizes the transactions made on the card, including purchases, payments, interest charges, and the total balance owed.

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.3

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Front

What does 'current balance' mean on a credit card statement?

Back

The current balance is the total amount of money that the cardholder owes to the credit card issuer at the time the statement is generated.

Tags

CCSS.6.NS.C.7C

Front

How is interest calculated on a credit card?

Back

Interest on a credit card is typically calculated based on the average daily balance and the annual percentage rate (APR). The formula is: (Average Daily Balance) x (Daily Periodic Rate) x (Number of Days in Billing Cycle).

Tags

CCSS.7.RP.A.3

Front

What is a credit limit?

Back

A credit limit is the maximum amount of credit that a credit card issuer allows a cardholder to borrow on a credit card.

Front

What does it mean to charge an amount to a credit card?

Back

Charging an amount to a credit card means making a purchase using the credit card, which increases the cardholder's balance owed.

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.3

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Front

What is the significance of making a payment on a credit card?

Back

Making a payment on a credit card reduces the balance owed and can help avoid interest charges if paid in full by the due date.

Front

What is the difference between the minimum payment and the total balance due?

Back

The minimum payment is the smallest amount a cardholder can pay to keep the account in good standing, while the total balance due is the full amount owed.

Tags

CCSS.6.NS.C.5

Front

What is the impact of late payments on a credit card account?

Back

Late payments can result in late fees, increased interest rates, and a negative impact on the cardholder's credit score.

Front

What is a billing cycle?

Back

A billing cycle is the period of time between credit card statements, typically lasting about 30 days.

Front

What is the purpose of a credit card's grace period?

Back

The grace period is the time during which a cardholder can pay off their balance without incurring interest charges, usually applicable if the previous balance was paid in full.