Understanding Credit and Debt Management

Front

What is the principal in terms of a line of credit?

Back

The amount you owe before interest is added

Front

Which of the following is a benefit of using a credit card responsibly? Excessive debt, A poor credit history, Convenience, Long-term financial liability

Back

Convenience

Front

What does APR stand for in the context of credit cards?

Back

Annual Percentage Rate

Front

What is the purpose of a credit report?

Back

To reflect the extent of your credit and payment history

Front

Which of the following is a credit card "Don't"? Pay your bills on time, Check monthly statements, Notify your bank if your card is lost

Back

Use your card for major purchases

Front

What is a penalty rate in the context of credit cards?

Back

A higher interest rate charged for late payments or exceeding the credit limit.

Front

What is the minimum monthly payment on a credit card?

Back

The smallest payment you can make and still be in good standing

Front

How long does negative information remain on your credit report?

Back

7 years

Front

What is a low interest teaser rate?

Back

A time-limited low interest rate that increases later.

Front

Which of the following is a credit card "Do"? Skip payments occasionally, Use one credit card to pay another, Pay your bill in full each month, Give in to opportunities to raise your credit limit

Back

Pay your bill in full each month