Credit Cards

What is one advantage of having a credit card?

• It prevents you from spending more than you earn.
• It allows you to make purchases without carrying lots of cash.
• It encourages you to budget your money wisely.
• It helps you pay off debts that you may have.

What happens when you don't have enough money to pay for the things you charged?

• You end up owing less than the original amount of money you charged.
• You end up owing more than the original amount of money you charged.
• You end up owing the same amount of money you charged, it just takes a while to pay off.

Why would your credit provider give you a credit limit?

• To remind you to pay your bill on time.
• To prevent you from enjoying the things you buy.
• To prevent you from spending more money than you can pay back.
• To prevent you from shopping in certain places.

When you make a credit card purchase at a store, who do you agree to pay?

• The store.
• The bank where the store keeps its money.
• Your credit provider.

How do credit card companies make money?

• By charging late fees and interest to their customers.
• By making you pay an extra dollar on every purchase.
• By charging late fees and interest to stores and other businesses.
• By earning interest on the money they have saved up.

Tags

CCSS.7.NS.A.3

What is the best way to avoid credit card debt? Choose the best answer.

• Use several credit cards to avoid putting too much money on one card.
• Don't spend more money than you have.
• Only use credit cards to by 

Easy credit can entice people to make purchases they can't pay off. What does "entice" mean?

• prevent
• remind
• force
• lure

How is charging a purchase like getting a loan?

• You borrow money from your credit provider.
• You borrow money from the store in order to pay your credit provider.
• You borrow money from an ATM in order to pay your credit provider.

Which of the following statements is an opinion?

• A bad credit history is one of the worst things that could happen to a person.
• A bad credit history can prevent you from getting a mortgage.
• A bad credit history may make it difficult to get a student loan for college.
• None of these.

What conclusion can you draw about using credit cards?

• They should only be used if you have a lot of money in the bank.
• They are the best tool you can use to spend money.
• They should be used with extreme caution.