Unit 5 - Review (Credit)

Credit cards, when used responsibly, can provide benefits for its consumers. Which statement below describes a benefit for a consumer using a credit card?

• A credit card company will allow you to buy now and pay back your debt when you are ready.
• A credit card doesn't cost you any more money than using a debit card as long as you make regular payments.
• Using a credit card responsibly and paying the balance off each month can help improve your credit score.
• People that use credit cards become wealthy more quickly.

What is the term for the least amount that must be paid on a credit card each month?

• Late Fee

• Credit Limit

• Minimum Payment

Tags

CCSS.7.RP.A.3

You have a choice between two credit cards: American Express 8.99% or Chase Sapphire 12.99%. Which card offers the better rate?

• American Express - because it has a lower interest rate

• Chase Sapphire - because it has a higher interest rate

• All of the above

this payment card deducts the specific amount directly from your checking account

• credit card

• debt

• debit card

Tags

CCSS.RI.11-12.5

CCSS.RI.6.5

CCSS.RI.7.5

CCSS.RI.8.5

CCSS.RI.9-10.5

using this payment card means you are borrowing the money for a short period of time but have to pay the money back

• credit card

• investment

• debit card

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

It would be best to have a high credit score

• True
• False

Only making the minimum payment on a credit card every month will:

• take longer to pay off which will result in paying more interest & more money

• lower the amount total paid for the purchase

• pay off the credit card faster

One benefit of having a credit cards is:

• the money comes right out of your checking account

• allows you to build a positive credit report by showing you are responsible

• you will not get any rewards, points, or cash back

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

• creditworthiness

• credit report

• credit limit