Credit Cards Vocab

I used the ________________ and handled credit cards, so I had to be very careful.

• clothing

• cash register

• laboratory

• handle

Money is borrowed and repaid at a later date.

• Debit Card

• Credit Card

• Both

May pay interest.

• Debit Card

• Credit Card

• Both

Which of the following is a benefit of using a credit card responsibly?

• A) Accumulating debt

• B) Building credit history

• C) Increasing interest rates

• D) Decreasing credit score

What is the term for the maximum amount you can charge on a credit card?

• A) Credit limit

• B) Interest rate

• C) Minimum payment

• D) Balance transfer

Which of the following is NOT a feature of a credit card?

• A) Credit limit

• B) Interest rate

• C) Savings account

• D) Rewards program

What does APR stand for in credit card terms?

• A) Annual Percentage Rate

• B) Annual Payment Rate

• C) Average Payment Rate

• D) Average Percentage Rate

Which of the following actions can help improve your credit score?

• A) Missing payments

• B) Maxing out your credit card

• C) Paying bills on time

• D) Applying for multiple credit cards at once

What is a common consequence of missing a credit card payment?

• A) Increased credit limit

• B) Late fee

• C) Lower interest rate

• D) Additional rewards

Which term describes the amount you owe on your credit card?

• A) Credit limit

• B) Balance

• C) Interest rate

• D) Minimum payment