3.2 Intro to Credit Cards

Which statement with the bolded words is in the correct place?

• A

• B

• C

• D

Which of the following statements best explains the purpose of a Schumer box?

• Gives the lender a clear report of your credit history and creditworthiness for a new card

• Calculates the total interest you will be charged on your previous month's purchases

• Gives the borrower a clear description of the APR, fees, and other major conditions of their credit card

• Provides a list of all purchases made on a credit card and the price of each item, for the benefit of the lender and the borrower

Which description best fits what is meant when someone talks about their credit card APR?

• The total amount of purchases they charge on an annual basis

• The remaining balance left on a credit card once the minimum monthly payment is made

• The average credit score each person is assigned based on their payment history

• The percent the credit card company charges you for the benefit of receiving a temporary loan from them

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CCSS.HSF.BF.B.5

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If Fabrice has a $1200 balance on his credit card this month and an APR of 20%, his interest charge for the month will be...

• $2

• $20

• $120

• $200

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CCSS.HSA.SSE.A.1

Based on the Schumer box provided, which of the following statements is TRUE.

• The lowest interest rate you are eligible for on this card is 0%

• The lowest interest rate for this card is available to all card-members, regardless of their credit score

• This card has a different APR range for balance transfers and new purchases

• This card has a variable-rate APR

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CCSS.HSF.LE.A.1

Which statement includes one real benefit from shopping with a credit card?

• You may earn cash back, travel rewards, or other perks for each dollar you spend

• Most stores will give you a discount if you pay with credit instead of cash or debit

• It pulls money directly from your bank account, preventing you from overspending

• If you do not have the money to pay your monthly bill, you can just wait a few months and pay the same amount then

The following high school seniors each bought $1500 of stuff to bring to college with them in the fall. Each one used a credit card with similar terms to make their purchases. Which student will end up paying the MOST for their purchases.

• Robert, who makes $300 payments per month until the debit is $0

• Stephan, who pays the first $1000 using graduation money and then pays $250 per month until the debt is $0

• Nelson, who makes the minimum monthly payment each month until the debt is $0

• Joan, who can't afford to make any payments and plans to put off the debt until she gets a summer job next year

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CCSS.HSA.CED.A.1

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CCSS.HSA.SSE.A.1

Isaac and his family want to take a trip to Disney World. They start charging all their monthly expenses on a credit card that gives them airline miles, in hopes of earning one or two free flights by next summer. In the month of February alone, they charge $2500 on the card. When the bill comes, Isaac pays the full balance. Which figure best estimates the interest he paid, given that his card has a 12% APR?

• $0

• $25

• $300

• $2525

Stephanie's credit card has a limit of $10,000. She charges $3000 in car repairs and makes the minimum monthly payment until she's debt free. Based on the sentences above, each of the following statements is true, EXCEPT:

• Stephanie will be making credit card payments for many years to pay off this debt

• Stephanie could still charge more on her card if she needed or wanted to.

• Stephanie has ruined her credit score by using her credit card for such a large purchase.

• Stephanie will owe less total money if she increases each monthly payment by $50.

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CCSS.HSA.CED.A.1

CCSS.HSA.CED.A.2

CCSS.HSA.REI.B.3

Look at the credit card payment provided. If Teresa wants to avoid owing a late payment fee this month, what's the minimum on-time payment she must make?

• $0

• $25

• $35

• $523.20

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CCSS.7.NS.A.1

CCSS.7.NS.A.3