Credit Card Vocabulary

What is APR?

• the interest rate that you will pay on any unpaid balances

• the interest rate that you will pay on any purchases

• the fee you pay yearly for being a cardholder

• the fee you pay monthly for being a cardholder

Which is better?

• a high APR

• a low APR

Is an annual fee a good or bad?

• Good!

• Bad!

What is an annual fee?

• the interest rate you pay on any unpaid balances

• the interest rate you pay on any purchases

• the yearly fee you pay for being a cardholder

• the monthly fee you pay for being a cardholder

Tags

CCSS.7.RP.A.3

What is a credit limit?

• the maximum amount of money you can borrow with one card

• the minimum amount of money you can borrow with one card

• the amount of money that you borrowed

• the amount of money that must be repaid

What is a credit balance?

• the maximum amount of money you can borrow with one card

• the minimum amount of money you can borrow with one card

• the actual amount of money that you borrowed/spent

• the amount of money that must be repaid

Tags

CCSS.7.EE.B.3

CCSS.7.NS.A.1

CCSS.7.NS.A.3

What is a minimum payment?

• the minimum amount of money you can pay back - you will have to pay interest on the unpaid balance

• the minimum amount of money you can pay back - you will NOT have to pay interest

• the maximum amount of money that you can borrow with a card

• the amount that will be shown on your bill

Paying only the minimum payment will positively affect your credit score.

• True

• False

Paying only the minimum payment will cost you interest. You will end up paying a lot more for an item in the end!

• True

• False

Tags

CCSS.HSA.CED.A.3

CCSS.HSA.SSE.A.1

Inquiries will...

• not affect your credit score.

• temporarily affect your credit score.

• permanently affect your credit score.