Financial Literacy Review

Front

What is a credit score?

Back

A credit score is a numerical representation of a person's creditworthiness, based on their credit history.

Front

True or False: Paying cash for all purchases helps build a positive credit history.

Back

False

Front

What factors are used to calculate a credit score?

Back

Factors include payment history, amount of money owed, length of credit history, and types of credit used.

Front

What is the difference between debit and credit cards?

Back

A debit card withdraws money directly from your bank account, while a credit card allows you to borrow money up to a certain limit to make purchases.

Front

What does it mean to use a credit card?

Back

Using a credit card means borrowing money to make a purchase, which must be paid back later.

Front

What is a loan?

Back

A loan is money that is borrowed and must be paid back with interest.

Tags

CCSS.L.3.4D

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

Front

What is the purpose of a credit card?

Back

The purpose of a credit card is to allow consumers to make purchases on credit and pay for them later.

Front

What is a positive credit history?

Back

A positive credit history shows that a person has consistently paid their debts on time.

Tags

CCSS.RI.4.5

CCSS.RI.5.5

CCSS.RI.6.5

CCSS.RI.7.5

CCSS.RI.8.5

Front

What happens if you miss a payment on your credit card?

Back

Missing a payment can negatively impact your credit score and may result in late fees.

Front

What is the term for the total amount of money you owe on your credit card?

Back

Credit utilization.