STAAR Review Financial Literacy

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What is a Credit Card?

Back

A credit card is a payment card that allows you to borrow money from a bank to make purchases, which you pay back later, usually with interest.

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What effect does losing your job have on your credit score?

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Losing your job has a negative effect on your credit score because it may lead to missed payments.

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What is a Debit Card?

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A debit card is a payment card that deducts money directly from your bank account to pay for purchases.

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How long does a negative action stay on your credit report?

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A negative action stays on your credit report for 7 years.

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What are Room and Board in college expenses?

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Room and Board refers to the costs of housing and meals that students must pay for while attending college.

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What is the difference between a Debit Card and a Credit Card?

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A Debit Card uses your own money from your bank account, while a Credit Card allows you to borrow money to make purchases.

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What are Extra Fees in college?

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Extra Fees are additional costs that colleges may charge for services like lab fees, activity fees, or technology fees.

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What is the importance of a good credit score?

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A good credit score is important because it can help you qualify for loans, get better interest rates, and even secure housing.

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What is a budget?

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A budget is a plan that outlines how much money you expect to earn and spend over a certain period.

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What is interest?

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Interest is the cost of borrowing money, usually expressed as a percentage of the amount borrowed.