Credit Cards

What is a credit card?

• a form of unsecured credit (basically a loan)

• a loan you you take out when you sign up for a bank

• a card that has money from your checks in it

• a type of account that allows you to buy whatever you want

Which is an advantage of credit cards?

• There is a transaction fee on them

• They are accepted mostly everywhere

• You have to pay a minimum fee every month

• It is easier to over-spend with a credit card

True or False: The Grace Period for a Cash Advance is shorter than 30 days?

• True

• False

Which type of calculation for interest is recognized as the best?

• Previous Balance

• Ending Balance

• Average Daily Balance

• Adjusted Balance

What does the minimum payment mean?

• It is the full amount you need to pay on your credit card statement

• It is the amount of interest you need to pay on a balance

• It is the minimum amount you need to pay on a credit card statement to stay in good standing

• It is the fee you pay if you miss a payment on your credit card statment