Review of Intro to Business-3

What is credit?

• Money allocated to a specific account for future use by the consumer without borrowing
• Goods, services, or money received in exchange for a promise to pay a definite sum of money at a future date
• The ability and willingness of an individual to pay back a loan as perceived by the lender
• An individual’s character, capital, capacity, collateral and conditions

Amount charged if your payment is received after the billing date

• late payment fee
• overdue fee
• withdrawal fee
• loser fee

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

Maximum amount you are allowed to carry as a balance on the card

• interest
• ARP
• credit line
• all of these

This is a fee that some, but not all, credit card issuers charge to use their credit card.

• APR
• annual fee
• monthly fee
• no such thing

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5

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

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

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

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.3

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Your credit score is not configured off of which of the following:

• Payment history
• Amount owed
• GPA
• Length of credit history

Which of the following items can be found on a credit card statement?

• payments made and new charges
• fees and interest charged
• year to date totals and how long it will take you to pay it off w/minimum only
• all of these

To build a good credit history, you should

• pay the minimum or more on your account each month
• pay on time or early
• be careful not to take on too much debt
• all of these

Credit can lead to overbuying in some instances.

• True
• False