Credit Cards

What are the two types of money Jasmine can use to pay for her expenses?

• Savings and loans

• Cash and checks

• Debit and credit

• Gift cards and coupons

What is the main difference between using debit and credit?

• Debit offers rewards for purchases

• Credit is only for online purchases

• Credit increases your savings

• Debit draws money directly from your bank account

What does the bank expect when you use a credit card?

• To pay back the full amount at the end of the year

• To use the card for certain types of purchases only

• To share your rewards with the bank

• To pay interest if the balance isn't paid in full

How can Jasmine avoid paying interest on her credit card?

• By paying off her balance in full by the due date

• By only using her card for large purchases

• By transferring her balance to another card

• By paying a minimum payment each month

What benefit does responsibly using a credit card offer Jasmine?

• A permanent increase in credit limit

• Unlimited cashback on all purchases

• Building a great credit score

• Elimination of all future interest charges

What is required for most credit cards in terms of credit score?

• Above 700

• Exactly 500

• No requirement

• At least 600

What makes student credit cards accessible to Jasmine?

• Owning a house

• Having a full-time job

• Being a full-time student and at least 18 years old

• Being over 25 years old

What is a consequence of having a co-signer for a credit card?

• The co-signer is liable for missed payments

• The co-signer will automatically improve their credit score

• The co-signer gets all the rewards

• The co-signer can use the card without permission

How can Jasmine initially build her credit score without her own credit card?

• By being added as an authorized user on her family's account

• By borrowing money from friends

• By paying for her expenses in cash

• By using a debit card for all her purchases