Understanding Credit Cards

A yearly fee that may be charged for having a credit card

• Annual Fee
• APR
• Credit Limit
• Penalty APR

The cost of credit expressed as a yearly interest rate

• APR
• Credit Limit
• Pre-approved
• Schumer Box

A plastic card that you can use to access a line of credit that has been established in advance

• Gift Card
• Debit Card
• Credit Card
• Bonus Card

Terms and fees of a credit card in an easy to read box on all credit card applications and solicitations

• Big red box
• Beat box
• Shoe Box
• Schumer Box

When do you have to pay interest on the balance of a credit card?

• If it is paid in full each month
• If it is NOT paid in full each month

Credit cards can have a positive or negative impact on an individual’s
credit history, depending on how the card is managed and used.

• True
• False

A _______card is linked to a consumer’s bank account

• Credit
• Gift
• Bonus
• Debit

Approval for a credit card depends on the applicant’s _________.

• First Name
• Credit History
• Last Name
• Birth Month