Unit 6 - Credit Card Q's

Which card is it? Purchase is withdrawn directly from a checking or savings account. 

• Debit card

• Credit card

• Both

Which card is it? You can purchase an item now and pay for it later. (Like a loan)

• Debit card

• Credit card

• Both

You can build your credit score with a _________

• credit card

• debit card

• both credit and debit card

Benefits of credit cards include:

• safe and convenient, bonuses are offered

• allows you to build a positive credit report

• needed for reservations (hotels, car rentals) and online shopping

• all of these

The least amount that must be paid on a credit card each month is the

• Late Fee

• Credit Limit

• Payment amount

• Minimum Payment

How can a cardholder avoid paying interest on a credit card?

• Do not pay anything
• Pay the minimum payment after its due date
• Pay the minimum balance every month
•  Pay the balance in full every month

The credit company can charge interest if the credit card bill is not paid in full by the due date

• True
• False

It is best to pay more than the minimum due on your credit card.

• True
• False

There’s no penalty if I pay my credit card balance after the due date.

• True

• False

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

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