3-6 Credit Card Statement

Front

What is a credit line?

Back

A credit line is the maximum amount of credit that a financial institution extends to a borrower, allowing them to borrow funds up to that limit.

Front

How do you calculate available credit?

Back

Available credit is calculated by subtracting the current balance from the credit line. For example, if the credit line is $9,000 and the current balance is $2,608.18, the available credit is $9,000 - $2,608.18 = $6,391.82.

Front

What is the best way to avoid paying interest on a credit card?

Back

The best way to avoid paying interest is to pay the balance in full every month before the due date.

Front

What is a finance charge?

Back

A finance charge is the interest charged on a credit account for not paying the total amount owed by the due date.

Front

What is a credit limit?

Back

A credit limit is the maximum amount you may borrow on a credit card.

Front

What is the minimum payment on a credit card statement?

Back

The minimum payment is typically a percentage of the new balance, often around 3%.

Front

What are new purchases on a credit card statement?

Back

New purchases are the total amount of transactions made with the credit card during the billing cycle.

Front

What happens if you only pay the minimum payment on your credit card?

Back

If you only pay the minimum payment, you will incur interest on the remaining balance, and it may take longer to pay off the debt.

Front

What is the difference between a credit card and a charge account?

Back

A credit card allows you to borrow money up to a limit and pay it back over time, while a charge account requires you to pay the full balance each month.

Front

What is a credit report?

Back

A credit report is a detailed report of an individual's credit history, including credit accounts, payment history, and outstanding debts.