Credit Card Flashcard

Front

What does APR stand for?

Back

Annual Percentage Rate

Front

A high FICO score means you have better credit than someone with a low FICO score.

Back

True

Front

The least amount that must be paid on a credit card each month is

Back

Minimum Payment

Front

How can a cardholder avoid paying interest on a credit card?

Back

Pay the balance in full every month

Front

Grace Period - The time allowed to pay your balance without being charged a finance charge. Usually 25 to 30 days.

Back

True

Front

Credit cards can help you build a credit history that will improve your chances of getting house or car loans in the future.

Back

True

Front

The three major institutions that keep credit records on individuals and businesses are _____, ______, and ______.

Back

Equifax, Experian, Trans Union

Front

FICO Scores are calculated from a lot of different credit data in your credit report and are scored from _____ to _____?

Back

300 to 850

Front

You have a choice between two credit cards: American Express 8.99% or Chase Sapphire 12.99%. Which card offers the better rate?

Back

American Express

Front

You charge $500 on each of your two credit cards. One is American Express with an interest rate of 15.99%. The other is Chase Sapphire with an interest rate of 20.99%. Assuming that you are only making the minimum payment of $25 to each of the credit card companies, which card will you have paid more interest for?

Back

Chase Sapphire