Credit Card Terms

What is a typical introductory rate for a credit card?

• 0%

• 5%

• 1%

• 100%

What is true about an introductory rate?

• The rate will stay the same for ever

• The rate will wear off after a certain amount of time

• The rate is charged when you pay your bill late

• The rate will always be higher than the APR

What does APR mean?

• The late payment fee you are charged

• The interest rate you are charged for borrowing money.

• Your credit score

• Your minimum payment

What is typical for a late payment fee on a credit card?

• $15-$25

• $25-$35

• Nothing - you will never be charged if you pay your bill late

• $75

What is false about annual fees when it comes to credit cards?

• It is what you are charged per year for having the credit card

• Every card has an annual fee

• Not every card has an annual fee

What happens if you pay only the minimum payment on your credit card?

• You won't be charged interest

• You will be charged interest on the remaining balance

What term is given to the maximum amount of money that you can use on your credit card each month?

• Credit Limit/line

• Balance

• Credit amount

• Payment history

What happens when you have a higher credit score?

• Your credit card interest rate will most likely be lower

• Your credit card interest rate will most likely be higher

• Your credit card interest rate is not impacted by credit scores

Which factor will be the most influential in your credit score?

• Credit History

• Amounts owed

• Length of Credit history

• Credit Mix

True or False: When you apply for a credit card , you can be denied.

• True

• False