Credit Cards

What is your job as a borrower?

• To pay back your loans promptly

• To borrow as much as humanly possible

• Spend your loans and not pay them back

What does APR mean?

• Average Person Ratio

• Annual Percentage Rate

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What is one advantage of having a credit card?

• It prevents you from spending more than you earn.

• It allows you to make purchases without carrying lots of cash.

• It encourages you to budget your money wisely.

• It helps you pay off debts that you may have.

What happens when you don't have enough money to pay for the things you charged?

• You end up owing less than the original amount of money you charged.

• You end up owing more than the original amount of money you charged.

• You end up owing the same amount of money you charged, it just takes a while to pay off.

Why would your credit provider give you a credit limit?

• To remind you to pay your bill on time.

• To prevent you from enjoying the things you buy.

• To prevent you from spending more money than you can pay back.

• To prevent you from shopping in certain places.

How do credit card companies make money?

• By charging late fees and interest to their customers.

• By making you pay an extra dollar on every purchase.

• By charging late fees and interest to stores and other businesses.

• By earning interest on the money they have saved up.

What is the best way to avoid credit card debt? Choose the best answer.

• Use several credit cards to avoid putting too much money on one card.

• Don't spend more money than you have.

• Only use credit cards to by 

How is charging a purchase like getting a loan?

• You borrow money from your credit provider.

• You borrow money from the store in order to pay your credit provider.

• You borrow money from an ATM in order to pay your credit provider.

Which of the following statements is an opinion?

• A bad credit history is one of the worst things that could happen to a person.

• A bad credit history can prevent you from getting a mortgage.

• A bad credit history may make it difficult to get a student loan for college.

• None of these.

What conclusion can you draw about using credit cards?

• They should only be used if you have a lot of money in the bank.

• They are the best tool you can use to spend money.

• They should be used with extreme caution.