5.3 Young People and Credit Cards

Front

What happens when you use your debit card?

Back

You pull money directly from your checking account.

Front

What is a secured credit card?

Back

The borrower puts down a security deposit that doubles as the credit card’s limit. They make purchases as they would with a regular credit card, and they’re responsible for paying at least the minimum balance on time every month. As long as they do so, their account will stay open, they build credit, and their security deposit remains untouched.

Front

What is a credit score?

Back

Summarizes your credit history based on your financial behavior

Front

What is a credit limit?

Back

The total amount of money you can borrow

Front

What is an interest rate?

Back

The percent charged on the amount you own

Front

What is a balance?

Back

Amount owed on an existing line of credit

Front

What is a credit report?

Back

A detailed list of your credit usage history

Front

What is a minimum monthly payment?

Back

The minimum amount owed each month to keep your credit in good standing

Front

What term describes the amount you must pay in order to be considered “up-to-date” with your credit card payments?

Back

Minimum payment

Front

Which of these transaction types DECREASE how much you owe the credit card company?
Options:
Balance Transfers,
Cash Advances,
Payments,
Interest Charged

Back

Payments