A credit card is a form of a loan.

When you apply for a loan, you will be told the interest rate.

A loan’s principal is the amount you pay back.

Credit card interest rates are usually lower than rates for other loans.

A credit card user can avoid interest charges by paying the entire balance when the bill is due.

A person can expect to pay the same amount of interest on a loan no matter what bank or credit union they use.

Interest rates on loans vary based on changes in the market for loans.

Riskier borrowers are likely to be charged lower interest rates.

The higher the interest rate, the more you will pay in interest.

The term of a loan is how long it will take you to pay it back.

Many people use loans to pay for large expenses such as college or a home.

Credit cards and debit cards are basically the same thing.

Most credit cards have a maximum amount that can be charged.

If you pay the minimum monthly payment on a credit card bill, then you won’t owe any interest.

All credit cards have an annual fee that you must pay to the credit card company.

You cannot have a credit card or sign for a loan until you are 18.

People under the age of 21 may have a harder time getting credit.

Using a credit card subtracts money from your checking account.

A variable rate loan means the interest rate can change over time.

It is a good idea to shop around for the best interest rate before using credit.

The APR of a loan is the anticipated payment rate.

An advantage of using credit is that you can make large purchases and pay them off over time.

Making a late payment can result in being charged a fee.

You can get your first credit card when you turn 16.