PFIN Lesson 8: Getting a Credit Card

What's another name for a "debtor"?

• owner

• borrower

• someone who gives money

• lender

Which is an example of interest rate?

• late fees

• introductory rate

• present % of the purchase amount

• borrower would pay $110 for $100 borrowed; 10%

What is the difference between a credit card & debit card

• Credit card: buy now, pay later

  Debit card: money out of your checking account

• Nothing, they are both the same

• Credit card: money out of your checking account

  Debit card: buy now, pay later

• The material they are made of

What is a credit card?

• principal

• card that let's you buy now, pay later

• card that takes out money from your checking account

• annual percentage rate

What is a debit card?

• principal

• card that let's you buy now, pay later

• card that takes money out of your checking account

• annual percentage rate

Credit cards are ___ & helpful in ___.

• convenient, emergency

• expensive, college

• friendly, daily life

• beneficial, school

Paying the minimum payment each month can... (2 answers)

• balance will grow

• harm your credit score

• help your credit score

• pay your bills

What is principal?

• amount of money given

• amount of money stolen

• amount of money lost

• amount of money borrowed

Introductory rate is...

• Temporary interest rate disguised as a low APR but after time it goes back to normal

• High APR

• Permanent interest rate

• Similar to low APR

At what age can you get a credit card?

• 50

• 16

• 21

• 18