Credit and Loans Quiz

The yearly percentage rate charged when a balance is held on a credit card. Usually, the lower the percentage rate, the lower the cost of the credit.

• Prime Rate

• Annual Percentage Rate

• Monthly Percentage Rate

• Credit Rate

The time between billing statements, usually 28-31 days.

• Average monthly balance

• Annual Percentage Rate

• Payment Due Date

• Billing Cycle

The amount that still needs to be paid to the credit card company.

• Cash Advance

• Default

• Balance

• Creditworthiness

A rating based on how promptly a person pays his/her debts.

• Annual Percentage Rate

• Prime Rate

• Credit Rating

• Balance Rating

What is a credit limit?

• the maximum amount of money you can borrow with one card

• the minimum amount of money you can borrow with one card

• the amount of money that you borrowed

• the amount of money that must be repaid

What is a minimum payment?

• the smallest amount of money a borrower is required to pay each month - you will have to pay interest on the unpaid balance

• the minimum amount of money you can pay back - you will NOT have to pay interest

• the maximum amount of money that you can borrow with a card

• the amount that will be shown on your bill

A yearly fee that may be charged for having a credit card, independent of how you use the card

• Annual Fee

• Credit Limit

• Authorized User

• Cash Back

The length of time a cardholder has to pay a bill and avoid an interest charge - typically 23 to 30 days. A few cards do not have this and charge interest from the day the card is used. Many cards have this for purchases but start charging interest on cash advances immediately. Some cards do not have this at all.

• Grace Period

• Interest Rate

• Penalty APR

• Joint Account

The cost of credit; The rate charged for borrowing money usually expressed as a percent of the amount borrowed

• Annual Fee

• Interest Rate

• Statement

• Credit Karma

The typically low rate charged during the introductory period after a credit account is opened, after which the regular, typically higher, APR will apply

• Credit Limit

• Introductory Rate

• Authorized User

• Co-signer