Buying Decisions & Credit Cards

Buying a snack

• Impulse Buying Decision

• Routine Buying Decision

• Limited Buying Decision

• Extensive Buying Decision

Looking for the perfect new car

• Impulse Buying Decision

• Routine Buying Decision

• Limited Buying Decision

• Extensive Buying Decision

Which of the following is NOT an incentive used by stores to encourage people to shop there.

• Store Money

• Hiking prices

• Discount Coupons

• Point Cards

The cost of credit expressed as a yearly interest rate is known as:

• Annual Percentage Rate (APR)
• Annual Fee
• Penalty APR
• Introductory Rate

Benefits of credit cards include:

• safe and convenient, bonuses are offered
• allows you to build a positive credit report
• needed for reservations and online shopping
• all of these

The maximum amount you may borrow on a credit card is known as:

• creditworthiness
• credit report
• credit limit
• variable rate of credit

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. 

Examples of penalty fees include:

• over-the-limit fee
• late payment fee
• returned payment fee
• all of these

How can you avoid paying interest fees on your credit card?

• Only use it for groceries
• pay off the full balance, on time, each month
• you cannot avoid interest fees
• only use Discover

It is wise to compare credit card offers before choosing one

• True
• False