Avoid Credit Trap 2

What is one of the rules for using your credit card?

• Always use your grace period

• Annual Percentage Rate

• Do not break the Golden Rule

• Use your card twice a month

This is a credit card that has an asset (cash) deposited into an account to secure the loan. Good introductory step to build your credit.

• authorized user

• credit card account

• debit card account

• secured credit card

This is the interest rate the credit company will charge you on a daily basis, 1 day or the APR divided by 365.

• Grace period

• annual fee

• Daily rate

• Minimum Amount Due

This is if you missed payments for six months, the credit company will write off your debt as uncollectable and negatively impacts your credit score.

• Grace period

• Annual Percentage Rate

• charged off

• Cash advance

What does M.A.D. stand for?

• Moving Annual Dividends

• Minimum Amount Done

• Minimum Amount Dividends

• Minimum Amount Due

This is the lowest amount the credit card company will allow each month for you to pay off.

• Minimum Amount Due

• Electronic Funds Transfer

• Credit trap

• Credit Fee

This is a type of loan without an underlying asset.

• Secured loan

• Debit card

• Credit card

• Unsecured loan

What is a tomorrow account?

• Savings account

• Money market account

• Certificate of Deposit

• Checking account

When you make a payment with a credit card, who is being contacted?

• Your checking account

• Your bank account

• Your credit account

• Your savings account

This is the interest rate the credit company will charge you on a yearly basis.