Getting a Credit Card Lesson 8

Front

Why is it a poor financial decision to pay only the minimum payment on your credit card?

Back

Because it increases the total interest you pay over time

Front

Which of the following best explains the difference between a Credit Card and a Debit Card?
A Credit Card allows you to borrow money up to a certain limit, while a Debit Card lets you spend money from your own bank account.

Back

A Credit Card uses borrowed money; a Debit Card uses your own money.

Front

What is Revolving Credit?

Back

A type of loan that allows repeated borrowing up to a set limit

Front

A credit card statement includes which of the following types of information?

Back

List of transactions, payment due date, and total balance

Front

What is a Credit Card Grace Period?

Back

A period during which you can pay your credit card bill without incurring interest charges.

Front

A Credit Limit is:

Back

The maximum amount that can be borrowed on a credit account.