Credit

Front

What are the benefits of credit cards?

Back

Safe and convenient, bonuses are offered, allows you to build a positive credit report, needed for reservations and online shopping, all of these.

Front

How long will it take to pay off a credit card with a balance of $4000 at 26% APR if paying $100 monthly?

Back

94 months.

Front

What is a credit score?

Back

A three-digit numerical rating that reflects how likely you are to repay your debt.

Front

What is the cost of borrowing money called?

Back

Interest.

Front

What is credit?

Back

Borrowed money.

Front

What does APR stand for?

Back

Annual Percentage Rate.

Front

What is the purpose of a credit report?

Back

To provide a detailed account of an individual's credit history.

Front

What is a credit limit?

Back

The maximum amount of credit that a financial institution will extend to a borrower.

Front

What is the difference between secured and unsecured credit?

Back

Secured credit is backed by collateral, while unsecured credit is not.

Front

What is a credit card's grace period?

Back

The time during which you can pay your balance without incurring interest.