Credit Cards Lesson

Credit Cards Lesson

Complete the notes either on Canvas or on Paper

There are questions at the end of this.

Multiple Choice

What is a credit card? 

• a small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit.
• A card that has a set balance that you can only use at one place.
• A card with the money from your checking account. 

Multiple Choice

Mrs. Brady took her family out to eat. She handed the waitress a card to purchase the meal. This charge appeared on a bill that she paid three weeks later. Which card did she use?

• Debit Card

• Credit Card

• Both

Multiple Choice

Money is withdrawn directly from a checking or savings account.

• Debit Card

• Credit Card

• Both

Multiple Choice

What is a good practice when it comes to credit cards?

• getting as many credit cards as possible

• paying only the minimum

• charging anything you want

• paying the amount charged in full each month

Multiple Choice

There’s no penalty if I pay my credit card balance after the due date.

• True

• False

Multiple Choice

The least amount that must be paid on a credit card each month is

• Late Fee
• Credit Limit
• Payment amount
• Minimum Payment

Multiple Choice

The cost of borrowing money is referred to as 

• Interest 
• Annual Percentage Rate 
• Credit 
• Credit Line 

Multiple Choice

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

• Only use it for groceries
• pay off the full balance, on time, each month
• you cannot avoid interest fees
• only use Discover

Multiple Choice

Examples of penalty fees include:

• over-the-limit fee
• late payment fee
• returned payment fee
• all of these

Multiple Choice

What is an annual fee? 

• The act of transferring money 
• A fee charged by a card issuer for being a card holder. 
• The days between the last statement and the current statement. 
• A fee charged to a cardholder's account once a payment is late. 

Multiple Choice

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

• creditworthiness
• credit report
• credit limit
• variable rate of credit

Multiple Choice

Benefits of credit cards include:

• safe and convenient, bonuses are offered
• allows you to build a positive credit report
• needed for reservations and online shopping
• all of these

Multiple Choice

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

• Annual Percentage Rate (APR)
• Annual Fee
• Penalty APR
• Introductory Rate