Credit Card Statement Questions

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What is the minimum payment on a credit card statement?

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The minimum payment is the smallest amount you can pay to keep your account in good standing, often a percentage of the balance or a fixed amount.

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What does the new balance on a credit card statement represent?

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The new balance is the total amount owed on the credit card after all transactions, payments, and fees have been applied for the billing cycle.

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How do you calculate available credit on a credit card?

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Available credit is calculated by subtracting the total purchases from the credit limit. For example, if the credit limit is $15,000 and purchases total $2,583.57, the available credit is $15,000 - $2,583.57 = $12,416.43.

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What is the formula to find the monthly periodic rate from an APR?

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The monthly periodic rate is calculated by dividing the APR by 12. For example, if the APR is 24.6%, the monthly periodic rate is 24.6% / 12 = 2.05%.

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What does the previous balance on a credit card statement indicate?

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The previous balance is the amount owed at the end of the last billing cycle before any new transactions or payments were made.

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What is a line of credit?

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A line of credit is a predetermined amount of money that a lender agrees to lend to a borrower, which can be used as needed.

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What is the significance of the APR on a credit card?

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The Annual Percentage Rate (APR) represents the yearly interest rate charged on borrowed money, which affects how much interest you will pay on outstanding balances.

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How can late payments affect your credit card statement?

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Late payments can result in late fees, increased interest rates, and a negative impact on your credit score.

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What is a credit card statement?

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A credit card statement is a monthly summary of all transactions, payments, fees, and interest charges on a credit card account.

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What are transaction fees on a credit card?

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Transaction fees are charges that may apply for certain types of transactions, such as cash advances or foreign transactions.