Unit 6 Credit

What is an annual fee?

• The act of transferring money

• A fee charged by a card issuer each year 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.

What is a finance charge?

• Possible charges added to your account for using the credit card.

• A fixed annual percentage rate of the finance charge.

• A charge from the bank for getting a credit card.

• None of the above.

An Annual Percentage Rate (APR) is?

• A low interest rate offered for a limited time by a company.

• The interest rate charged on the amount borrowed.

• The amount of interest charged to an account for the billing cycle.

• The money you gain after paying your bills.

Define; Credit Line

• Maximum amount you’re allowed to charge on your credit card

• Dollar Amount of something you bought on your credit card

• The amount you pay on Unpaid Balance

• PR Divided by 12 – Interest charged per month

Define; Minimum Payment

• Minimum payment you HAVE to make each month to avoid late fees
• Statement sent to you once a month
• Increase in APR if you are more than 60 days late paying
• The amount you pay on Unpaid Balance

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

Define; Late Payment Fee

• Fee charged when payment is received after the due date

• Dollar Amount of something you bought on your credit card

• Maximum amount you’re allowed to charge on your credit card

• The amount you pay on Unpaid APR that is lower for a year OR until a specific date

A plastic card issued by a bank or business used to buy goods and services on credit.

• Credit Card

• Debit Card

• Prepaid Card

• Gift Card

One time loan that is usually paid off in equal payments, like a mortgage:

• open-end (revolving) credit

• closed-end (installment) credit

• unsecured credit

• none of these

Credit that allows the user to keep borrowing and paying up to a specific limit:

• closed-end/installment credit

• open-end/revolving credit

• secured

• none of these

The fee for borrowing money is referred to as

• Interest

• Annual Percentage Rate

• Credit

• Credit Line