Credit Card Terms to Know

Which term represents interest and all other fees added on to credit purchases?

• annual fee

• annual percentage rate

• introductory rate

• finance charges

What fee will you pay if you go over your credit limit?

• minimum payment fee

• over-the-limit fee

• introductory rate

• grace period fee

The highest amount that can be charged to your credit account is called?

• credit limit

• free period limit

• minimum payment limit

• APR limit

What is the annual interest rate you’ll be charged if you carry a balance?

• introductory rate

• over-the-limit rate

• credit agency rate

• annual percentage rate

Introductory rates are also known as what?

• minimum payments

• teaser rates

• annual percentage rates

• annual fee rates

The least amount of money required to be paid each month is called what?

• grace period payment fee

• credit score fee

• minimum payment

• maximum payment

Revolving credit allows you to borrow up to a certain limit and pay back over time, with an example being a credit card. Non-revolving credit is a one-time loan for a specific purpose, such as a car loan.

• Revolving credit is a one-time loan, and non-revolving credit allows borrowing up to a limit.

• Revolving credit allows borrowing up to a limit, and non-revolving credit is a one-time loan.

• Both revolving and non-revolving credit allow borrowing up to a limit.

• Both revolving and non-revolving credit are one-time loans.

A "teaser rate" is a temporary low interest rate offered by credit card companies to attract new customers. Why would credit card companies use a teaser rate?

• To permanently lower interest rates for all customers

• To attract new customers with an initial low rate

• To increase the interest rate immediately after the teaser period

• To discourage customers from using their credit cards

Which of the following is an advantage of using credit?

• interest and fees

• purchasing power

• finance charges

• overspending

What term means how trusted you are to repay borrowed money?

• open-end credit

• credit risk

• creditworthiness

• FICO