credit cards

Front

What is a credit card?

Back

A credit card is a plastic card issued by financial institutions that allows the cardholder to borrow funds to pay for goods and services, with the agreement to pay back the borrowed amount plus any applicable interest.

Front

How do credit card companies make money?

Back

By charging late fees and interest to their customers.

Front

When should you use a credit card?

Back

Only for small purchases.

Front

What is a credit limit?

Back

A credit limit is the maximum amount of credit that a financial institution extends to a borrower on a credit card.

Front

What is an advantage of using a credit card?

Back

No need for carrying cash.

Front

What is a disadvantage of using a credit card?

Back

High interest rates can lead to significant debt if not managed properly.

Front

What does it mean to use a credit card with caution?

Back

It means to be mindful of spending and to ensure that you can pay back the borrowed amount to avoid debt.

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.3

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Front

What is a late fee?

Back

A late fee is a charge imposed by a credit card issuer when a payment is not made by the due date.

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Front

What is interest on a credit card?

Back

Interest is the cost of borrowing money on a credit card, typically expressed as an annual percentage rate (APR).

Tags

CCSS.7.RP.A.3

Front

What is the purpose of a credit score?

Back

A credit score is a numerical representation of a person's creditworthiness, used by lenders to assess the risk of lending money.