7.2 Intro to Credit Cards

What information on a Schumer Box should you focus on when choosing a credit card?

• The term of the credit card

• Grace Period

• Annual Percentage Rate (APR)

• Fees

How do you avoid paying interest on your credit card (or any other loan for that matter)?

• Always make the minimum payment over time

• Always make the full payment on time

• Pay interest 1st, then pay what you can on leftover balance

• Pay the principal 1st, then pay what you can on interest

Which is TRUE when you make only the minimum payment each month?

• You are charged interest on the remaining balance

• Credit card companies have permission to sell your information

• Your credit line is restored to its maximum amount

• It is the fastest way to pay off your debt

When can personal loans be a better option than credit cards?

• If you want to earn rewards and enjoy travel benefits

• If you want purchase protection & warranties

• If you want a lower interest rate

• If you need a lump sum of money right away

How are credit cards and debit cards different?

• They're both linked to a checking account in different ways

• With a credit card, you are borrowing from yourself

• Some debit cards say VISA on them; credit cards don't

• A credit card can offer perks such as purchase protection