Credit Card Costs Chapter 4 Section 1 Review

What is a grace period?

• The time allowed to pay your balance with a low interest rate 
• The time frame to spend as much money as you can.
• The time allowed to pay your balance without being charged. 

What is a finance charge?

• The amount of interest charged to an account for the billing cycle. 
• A fixed annual percentage rate of the finance charge.
• A charge from the bank for getting a credit card. 
• None of the above. 

Tags

CCSS.7.RP.A.3

What is an annual fee? 

• The act of transferring money 
• A fee charged by a card issuer for being a card holder. 
• The days between the last statement and the current statement. 
• A fee charged to a cardholder's account once a payment is late. 

Annual Percentage Rate (APR) is the yearly percentage rate of the finance charge. 

• True
• False 

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

The act of transferring debt from one credit card account to another.

• Annual Transfers

• Balance Transfers

• Penalty APR

• Variable-Rate APR

If I have an 18% APR, what is my monthly INTEREST RATE?

• 1.5%
• 12%
• 18%
• 2.5%

Balance - $10,000
Interest Rate - 2.7%
How much did you pay in interest?

• $270.00
• $280.00
• $275.00
• $273.00

Tags

CCSS.7.RP.A.3

The maximum dollar amount that can be borrowed.

• Balance Limit

• Credit Limit

• Over-the-limit Fee

• Maximum Fee

What is credit?

• Money allocated to a specific account for future use by the consumer without borrowing
• Goods, services, or money received in exchange for a promise to pay a definite sum of money at a future date
• The ability and willingness of an individual to pay back a loan as perceived by the lender
• An individual’s character, capital, capacity, collateral and conditions

The amount charged if your payment is received after the billing due date.

• late payment fee
• overdue fee
• withdrawal fee
• loser fee