4.4-4.5B Credit Cards and Statements Worksheet

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What is a credit card statement?

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A credit card statement is a monthly summary of all transactions made on a credit card, including purchases, payments, fees, and the total balance owed.

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How is the minimum payment on a credit card calculated?

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The minimum payment is typically calculated as a percentage of the new balance, often around 3%.

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What does 'New Balance' mean on a credit card statement?

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The New Balance is the total amount owed on the credit card at the end of the billing cycle, including any new purchases and interest.

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What is 'Total Available Credit'?

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Total Available Credit is the amount of credit that remains available for use on a credit card after accounting for the current balance.

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What are 'Payments/Credits' on a credit card statement?

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Payments/Credits refer to the total amount paid towards the credit card balance during the billing cycle, including any refunds or credits.

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What are 'New Purchases' on a credit card statement?

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New Purchases are the total amount of new transactions made on the credit card during the billing cycle.

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What is the significance of understanding credit card statements?

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Understanding credit card statements helps consumers manage their finances, avoid debt, and make informed payment decisions.

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What is the formula to calculate the minimum payment if the new balance is $700.93?

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Minimum Payment = New Balance x 0.03; For $700.93, Minimum Payment = $700.93 x 0.03 = $21.03.

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If a credit card has a total available credit of $7,299.07, what does this indicate?

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This indicates that the cardholder can still spend up to $7,299.07 without exceeding their credit limit.

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What does it mean if a credit card statement shows a new balance of $1,145.57?

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It means the cardholder owes $1,145.57 at the end of the billing cycle, which includes all transactions and fees.