Credit Cards

What is a credit card?

• A type of grocery store discount card

• A form of identification used for voting

• A payment card issued to users to enable the cardholder to pay a merchant for goods and services based on the cardholder's promise to the card issuer to pay them for the amounts plus the other agreed charges.

• A tool for measuring temperature

What are the benefits of using a credit card?

• Convenience, rewards, building credit, and fraud protection

• High interest rates

• Limited acceptance

• Negative impact on credit score

What are the potential drawbacks of using a credit card?

• Not building credit history, limited purchasing power

• No rewards, inconvenient to use

• High interest rates, overspending, accumulating debt

• Low interest rates, saving money

What is the difference between a credit card and a debit card?

• A credit card allows you to borrow money up to a certain limit, while a debit card deducts money directly from your bank account.

• A credit card has no limit on how much you can spend, while a debit card has a spending limit

• A credit card deducts money directly from your bank account, while a debit card allows you to borrow money up to a certain limit

• A credit card and a debit card are the same thing

What is a credit limit?

• The minimum amount of money a credit card company will allow you to borrow

• Maximum amount of money a credit card company will allow you to borrow on a single card

• The interest rate charged on a credit card balance

• The number of purchases allowed on a credit card

What is an annual percentage rate (APR) on a credit card?

• The APR on a credit card is the annualized interest rate that is charged to the cardholder for any outstanding balance on the card.

• The APR on a credit card is the monthly interest rate charged to the cardholder

• The APR on a credit card is the cashback percentage earned on the card

• The APR on a credit card is the annual fee charged for using the card

What are some common fees associated with credit cards?

• Annual fees, late payment fees, over-limit fees, and cash advance fees

• Interest fees

• Transaction fees

• Balance transfer fees

What is a credit score and why is it important for credit card users?

• A credit score is a measure of how much a person spends on their credit card.

• A credit score is a type of currency used to make payments for credit card bills.

• A credit score is a rating given to credit card companies based on their customer service.

• A credit score is a numerical representation of a person's creditworthiness, based on their credit history. It is important for credit card users because it determines their ability to qualify for credit cards, the interest rates they receive, and the credit limits they are offered.

What are some tips for responsible credit card use?

• Use credit cards responsibly by paying bills on time, keeping credit utilization low, and monitoring statements regularly.

• Make only the minimum payment

• Ignore credit card statements

• Max out the credit limit

What should you do if your credit card is lost or stolen?

• Wait for someone to return it to you

• Contact your credit card issuer to report the loss or theft.

• Do nothing and hope for the best

• Post about it on social media