Credit and credit cards test

Interest rate charged for balances on a credit card.

• APR

• Principal

• Collateral

• Fees

Convenience, record-keeping, emergency cash, bonus points, purchase protection, fraud prevention, building credit are disadvantages of having a credit card.

• True

• False

Open line of credit that can be used for any purchases as long as you're under the limit; payments vary monthly based on size of the debt.

• Fixed Rate

• Loan

• Revolving credit

• Principal

A number, generally between 300 and 800, that reflects the credit history shown in a borrower's credit report.

• credit history

• credit score

• credit application

• credit life

The smallest amount of a credit card bill that a credit card holder must pay each billing cycle; usually between 3-10%.

• maximin payment

• fixed payment

• minimum payment

• APR payment

Match the following

• collateral

• Someone who legally agrees to take responsibility for a person's debt if they cannot repay it

• debit card

• Debt tied to a specific tangible asset that can be used as collateral and repossessed if payments are not made.

• credit card

• An agreement where you are given a fixed amount of money for a fixed period of time that you must pay back, usually with interest

• loan

• A payment card that deducts money directly from a consumer's checking account to pay for a purchase.

• co-signer

• A card issued by a financial company giving the holder an option to borrow funds; primarily used for short-term financing.

Match the following

• credit

• the amount originally borrowed

• credit report agencies

• The amount you pay for borrowing money

• Interest

• companies that check your credit are.

• default

• Any arrangement where you get "stuff" (money, goods, services), and agree to pay for it in the future

• principal

• The failure to promptly pay when money is due; negatively affects your credit score!