What is a Credit Card?

The video explores the concept of credit cards through a series of family discussions. The narrator seeks to understand what a credit card is and how it works. The mom explains it as a payment method that involves borrowing money, similar to a loan. The dad adds that credit cards charge interest on the borrowed amount if not paid by the end of the month. The gran warns about interest fees if the balance isn't paid off, and Uncle Dee mentions interest-free periods and credit limits. The video concludes with the narrator feeling overwhelmed by the information.

What is a credit card primarily used for?

• To store money

• To save money

• To borrow money for purchases

• To earn interest

What happens if you don't pay off your credit card balance by the end of the month?

• You are charged an interest fee

• You earn rewards

• You get a discount

• You receive a bonus

What is an interest-free credit card?

• A card that never charges interest

• A card that charges double interest

• A card that charges interest only on weekends

• A card that doesn't charge interest for a set period

What must you remember about interest-free periods on credit cards?

• They last forever

• Interest starts if the balance isn't paid within the period

• They apply to all purchases

• They reduce your credit limit

What is a credit limit?

• The number of transactions allowed per month

• The amount of interest charged

• The minimum amount you must spend each month

• The maximum amount you can spend on a credit card