Credit

Debt is best explained as:

• Money owed

• A type of card that attaches to your checking account

• A payment made to a bank

• None of the above

Credit cards allow you to:

• Take money directly from your checking account when you buy something

• Have better interest rates than a homeowner's loan

• Purchase goods on credit understanding that you will have to pay it back at a later date

• All of the above

A percentage charged to someone for borrowing money is:

• A credit limit

• A minimum balance

• A percentage fee

• An interest rate

The Annual Percentage Rate (APR) is best described as:

• The late payment fee you credit card companies for paying your bills late

• The amount you pay just once a year

• the yearly cost of a loan (the cost of credit).

• The score you are given for using credit

The set length of time in which you have to make a payment on your credit card without interest

• Monthly billing

• Grace period

• Minimum payment deadline

• None of the above

The lowest amount of money you have to pay your credit card company each month

• Minimum balance

• Monthly billing amount

• Late payment fee

• APR

A credit limit is best described as:

• The amount of money you must spend each month on your credit card

• The balance you owe each month

• the maximum amount you can charge on your credit card

• None of the above

True or False: Credit card debt is probably cheaper to pay off than a loan for a car.

• True

• False