Credit Card

Someone who's in debt someone else money.

• lends

• owes

It may be very hard to get a loan if you have a .

• poor credit score

• small bank balance

On a credit card bill, the is the least amount of money you must pay.

• available credit

• minimum payment due

Always check your credit card to make sure that you're not being overcharged.

• payment

• statement

When you purchase something with a credit card, you .

• automatically improve your credit score

• buy it now and promise to pay for it later

• pay for it now but receive it later

• decrease your debt

If you have good credit, you .

• will never have to borrow money

• have never paid back money you owe on time

• are more likely to be denied a loan

• have a history of paying back money you owe on time

What is a minimum monthly payment?

• the minimum annual percentage rate on credit card

• the minimum amount on your credit card bill you need to pay each month

• the minimum you must purchase with your credit card each month

• the minimum interest you rack up each month

Which of the following is a FALSE statement?

• Bad credit can make it hard for you to borrow money

• Some credit cards come with low introductory costs

• The interest you owe can never be more than your original purchase with a credit card

• If you pay only the minimum monthly payment, your debt can add up quickly

Billy has bad credit. He likely .

• always paid his whole credit card bill on time

• doesn't have a credit card and has never borrowed money

• will be able to make a large purchase, like a car

• will have no hard time getting approved for loans

Cynthia hasn't established any credit at all. Which of the following is TRUE?

• She has a high chances of getting approved for loans

• She will always owe interest on her credit card bill

• She will have an easy time buying her first home

• Banks won't know if she's financially reliable