Credit Cards/Credit Card Statement Midterm

Front

What is one advantage of having a credit card?

Back

It allows you to make purchases without carrying lots of cash.

Front

Why would your credit provider give you a credit limit?

Back

To prevent you from spending more money than you can pay back.

Front

When you make a credit card purchase at a store, who do you agree to pay?

Back

Your credit provider.

Front

How do credit card companies make money?

Back

By charging late fees and interest to their customers.

Front

What is the best way to avoid credit card debt? Choose the best answer: Use several credit cards to avoid putting too much money on one card., Don't spend more money than you have., Only use credit cards to buy

Back

Don't spend more money than you have.

Front

How is charging a purchase like getting a loan?

Back

You borrow money from your credit provider.

Front

What conclusion can you draw about using credit cards?

Back

They should be used with extreme caution.

Front

The cost of credit expressed as a yearly interest rate is known as:

Back

Annual Percentage Rate (APR)

Front

The maximum amount you may borrow on a credit card is known as:

Back

credit limit

Front

How can you avoid paying interest fees and finance charges on your credit card?

Back

pay off the full balance on time, each month