Ch 6 Credit Card Review

Credit cards are an example of a​ (a)  

• line of credit
• Bank card
• Bad decision

Making only the monthly payment is​ (a)  

• not a good use of credit
• best use of credit
• a strategy to use when using credit

Who qualifies for credit?

• Person with good credit history

• Person that has income

• Anyone over 18 or have a cosigner

People get into credit card trouble when

• They pay more than the monthly payment

• They spend to the credit limit

• They pay their credit card bill in full

When making purchases on revolving credit, you

• Have less purchasing power

• Have your credit limit increase

• Have a chance to get more credit

​ (a)   are linked to your bank account.

• Debit cards
• Credit cards
• Prepaid cards

Billing cycles are typically

• 15 to 20 days

• 20 to 25 days

• 28 to 30 days

Reasons to open a credit card account is to

• Build credit history

• Gain access to reward programs

• Get more credit limits

If a credit card offers an introductory rate of 15% for a year, and then it becomes 24%. This is an example of?

• Fixed interest rate

• Variable interest rate

• Qualified interest rate

Benefits of using a credit card are

• Improve credit score

• Reward programs

• Build a credit history