Credit vs Debit

What are the two types of money Jasmine can use for her purchases?

• Cash and checks

• Cryptocurrency and digital wallets

• Debit and credit

• Savings and loans

What is the main difference between using debit and credit?

• Debit draws directly from your bank account, while credit is borrowed money.

• Debit allows you to earn rewards, while credit does not.

• Debit charges high interest, while credit does not.

• There is no difference.

What happens if Jasmine doesn't pay her credit card balance in full?

• She will earn rewards.

• She will receive a bonus.

• She will be charged interest.

• Her credit score will increase.

How can Jasmine avoid paying interest on her credit card?

• By paying the minimum payment

• By paying the full balance each month

• By not using her card at all

• By only using her card for large purchases

What benefit does responsible credit card use have on Jasmine's credit score?

• Freezes it

• Increases it

• Decreases it

• No impact

What are the requirements for most credit cards?

• At least 600 credit score, $15,000 annual income, debt payment to income ratio below 36%

• Only a full-time job

• No income necessary, any credit score, no debt

• Only a valid ID

What is a significant consideration when taking on a co-signer for a credit card?

• Both parties are liable for credit mistakes and missed payments.

• It increases the credit limit automatically.

• The co-signer receives all the rewards.

• The co-signer is not responsible for any debts.

What is an alternative to getting a credit card in your own name as a student?

• There are no alternatives

• Being added as an authorized user on a family member's account

• Using a prepaid card

• Only using cash

Why might lenders still want to see individual credit management despite being an authorized user?

• To increase interest rates

• Because being an authorized user has no impact

• To ensure responsibility with credit

• To check spending habits

Tags

CCSS.RI.11-12.5

CCSS.RI.6.5

CCSS.RI.7.5

CCSS.RI.8.5

CCSS.RI.9-10.5

What is the main message regarding credit card use?

• They are only for emergency situations

• Use them responsibly to avoid debt and build credit

• Use them irresponsibly to gain rewards

• Avoid them at all costs

Tags

CCSS.RI. 9-10.2

CCSS.RI.11-12.2

CCSS.RI.8.2

CCSS.RL.11-12.2

CCSS.RL.9-10.2