Credit Card Basics and Vocabulary Quiz

What is the primary 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 only allows you to spend money you already have.

• Credit cards are only used for online purchases, while debit cards are only for in-store purchases.

How do you avoid paying

fees and interest on your

account?

• Pay the card off in full every month so that you do not need to pay interest charges or

  late fees.

• Only pay the minimum bill

• Don't pay your bill at all

Which of the following is NOT a common credit card fee?

• Over-limit fee

• Late payment fee

• Membership fee

What is a credit limit?

• The minimum amount you must pay each month

• The maximum amount of money you can borrow on a credit card

• The fee for exceeding your credit card balance

Which is a pro (good thing) of having a credit card?

• It's free money

• You don't have to pay anything back to the bank

• It offers rewards like cash back or miles

Tags

CCSS.RI.3.10

CCSS.RI.4.10

CCSS.RI.5.10

CCSS.RI.6.4

CCSS.RI.7.4

What is a con (bad thing) of having a credit card?

• You can earn rewards from using your credit card

• It is harder to limit spending

• You have a good credit score

Tags

CCSS.L.2.4E

CCSS.L.3.4D

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

What is a credit score?

• How much money you spent with your credit card

• You get assigned a number between 300 and 850 based on how well you manage your

  credit accounts.

• Withdrawing cash from your credit card

What does it mean to "max out" a credit card?

• To pay off the credit card completely

• To use the card to its full credit limit (amount of money the bank loaned to you)

• To cancel the card

Tags

CCSS.RI.3.10

CCSS.RI.4.10

CCSS.RI.5.10

CCSS.RI.6.4

CCSS.RI.7.4

What is a grace period?

• A time frame in which you can cancel the card without fees

• Extra time to pay your bill if you didn't pay it by the due date

• The bank gets rid of your credit card bill

Tags

CCSS.L.2.4E

CCSS.L.3.4D

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

What is an account summary?

• Credit Score

• summary of your purchases, credits, payments, and interest for the billing period.

• How much interest you were charged