3.6 Credit Card Statements

• Baena Assignments Due TOMORROW

• Cengage 3.5a due 12/12

• For this Lesson: you MUST score a 60% to get this grade!

• no laptop? paper copies on desk

Multiple Choice

Why is understanding the billing cycle important for managing your credit card payments?

• It helps in maximizing rewards and cashback benefits.
• Understanding it allows for better investment opportunities.
• It is crucial for negotiating lower interest rates.
• It is important to avoid late fees, manage spending, and maintain a good credit score.

Multiple Choice

What is the purpose of a billing cycle in credit card management?

• To determine the interest rate on the card

• To calculate the credit card bill for a set period

• To set the minimum payment amount

• To decide the credit limit for the card

Multiple Choice

What information does a credit card statement typically provide to the cardholder?

• A summary of credits and debits for the month

• The interest rate charged by the bank

• A list of all available credit cards

• Instructions for applying for a new credit card

Multiple Choice

Which of the following best describes the purpose of a credit card account number?

• It identifies the credit card holder uniquely.

• It determines the credit limit.

• It shows the billing date.

• It indicates the payment due date.

Multiple Choice

What is the difference between available credit and credit line on a credit card?

• Available credit is the unused portion of the credit line.

• Credit line is the amount already spent.

• Available credit is the total amount owed.

• Credit line is the minimum payment due.

Multiple Select

Which of the following are important dates to keep track of on a credit card statement?

• Billing date

• Payment due date

• Account number

• Available credit

Multiple Choice

The smallest amount a borrower is required to pay each month. Each company has its own policy about this payment. 3-5% of the balance owed is a common minimum.

• Minimum Payment

• Late Payment Fees

• Credit Card

• Annual Fee

Multiple Choice

Which of the following is NOT considered a transaction on a credit card?

• Making a purchase

• Receiving a cash advance

• Paying the monthly bill

• Checking the account balance

Multiple Choice

Which of the following best describes the difference between a debit and a credit in an account statement?

• A debit is the amount charged to an account, while a credit is payment made to reduce your debt.

• A debit is payment made to reduce your debt, while a credit is the amount charged to an account.

• A debit and a credit both increase your account balance.

• A debit and a credit both decrease your account balance.

Multiple Choice

Which one is considered a danger of using a credit card

• no cash needed
• leads to overspending
• convenient
• earns rewards

Multiple Choice

To build a good credit history, you should

• open as much credit as possible quickly
• use the maximum credit allowed on all your credit cards
• pay on time and as much of your balance as possible
• all of these

Multiple Choice

If you pay a credit card late, what could happen?

• You may be charged the penalty APR

• Your credit score would go down.

• Both of the above.

• Neither of the above.

Multiple Select

Which of the following items would increase the balance due on an account statement?

• New purchases

• Payments/credits

• Previous balance

• Late charge

Multiple Choice

The interest that is charged to a buyer when paying for a purchase or service over time. 

• Finance Charge

• Finances

• Owe

• Balance Charge

Multiple Choice

The amount currently owed on a credit card. 

• new balance

• Credit card interest
• Credit card payment
• Credit card limit

Multiple Choice

How would you define minimum payment?

• It is the total amount owed on the credit card.

• An amount that is the lowest payment the credit card company will accept for the current billing period. 

• It is the average amount owed per day during the billing cycle.

• It is the interest charged each month.

Multiple Choice

Which term describes the interest charged to a buyer when paying for a purchase or service over time?

• Annual Percentage Rate (APR)

• Monthly periodic rate

• Minimum payment

• New balance