Credit Card Knowledge Flashcard

Front

What does APR stand for?

Back

Annual Percentage Rate

Front

What is a credit score used for?

Back

To determine eligibility for loans

Front

Which of the following is a benefit of having a good credit score? Lower interest rates on loans, Higher interest rates on savings, Increased loan rejection, Higher insurance premiums

Back

Lower interest rates on loans

Front

What is the main purpose of a credit card?

Back

To provide a line of credit for purchases

Front

How often is interest typically charged on a credit card balance?

Back

Monthly

Front

What is the consequence of missing a credit card payment?

Back

Late payment fee

Front

Why is it important to check your credit report regularly?

Back

To detect identity theft early

Front

What is one way to improve your credit score?

Back

Paying bills on time

Front

How does a high APR affect the cost of borrowing?

Back

It increases the cost of borrowing.

Front

What is a potential risk of using a credit card irresponsibly?

Back

Accumulating debt