5.7 Credit Management Review

Front

The least amount that must be paid on a credit card each month is

Back

Minimum Payment

Front

The credit company can charge interest if the credit card bill is not paid in full by the due date.

Back

True

Front

How can a cardholder avoid paying interest on a credit card?

Back

Pay the balance in full every month

Front

Only making the minimum payment on a credit card every month will:

Back

take longer to pay off which will result in paying more interest, more money!

Front

It is best to pay more than the minimum due on your credit card.

Back

True

Front

It would be best to have a high credit score

Back

True

Front

A credit report is a report showing a borrower's history of how well they paid their bills.

Back

True

Front

The primary purpose of bankruptcy law is to

Back

Provide a debtor with a “fresh start” through which debt can be repaid

Front

The amount borrowed is known as the ____.

Back

Principal

Front

An all-purpose credit card, such as Visa, MasterCard, and Discover, is an example of which type of credit?

Back

open-end agreement