Credit Cards

A ____ __ ______ is a set amount of money that you are allowed to borrow. 

(a)  

• This is money that you have to pay every year for using the credit card. It could be $0, or it could be several hundred dollars.

• Annual fee

• Annual percentage rate

• Interest

• Bill

The amount of interest that is charged on a credit card balance.

• Late fee

• Mortgage

• Annual percentage rate (APR)

• Annual fee

You need to be 18 or older to apply for any type of credit card and have a job or income.

• True

• False

A fee that you have to pay when you withdraw money with the credit card at an ATM or bank. It is usually around 3% of the money withdrawn plus other fees.

• APR

• Late fee

• Cash advance fee

• Foreign transaction fee

This is a charge for each time you go over your credit card limit. For example, if you were approved for a credit line of a $1000 for your credit card, and you go over this limit by $1.

• Cash advance fee

• Over-the-limit fee

• Interest

• Foreign transaction fee

• The better you credit rating the larger amount you will be allowed to borrow (the higher your credit line or limit).

• True

• False

It is a good idea to pay only the minimum amount due on your credit card bill.

• True

• False

A loan is revolving, and a credit card is not.

• True

• False

The average credit card holder in the United States has (a)   credit cards.