WorksheetsCredit Card Terms to Know
Total questions: 29
Worksheet time: 15mins
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
Which of these is not a part of your credit score?
length of credit history
payment history
total amount that you owe
high school grades
If you have a good credit score, you are more likely to:
be offered a job
be offered loans with better terms
be offered low rates on car insurance
all the above
An agreement to receive a service now and pay for it later.
service credit
open-end credit
closed-end credit
credit report
After paying off the balance, which type of credit remains open to be used again?
open-end credit
service credit
closed-end credit
finance charged credit
Having good credit means you are a low-risk borrower.
True
False
A credit score is also known as a FICO score.
True
False
Creating many new credit accounts will improve your credit score.
True
False
Your credit score is a point value of how well you have handled credit in the past, and how you may handle credit in the future.
True
False
Each of the credit agencies use a different formula scoring model, so you might have three different credit scores.
True
False
Once your credit score is calculated, there is nothing you can do to change it.
True
False
The annual interest rate you will be charged if you carry a balance on your credit card.
Annual percentage rate
Monthly interest rate
Credit limit
Minimum payment
A type of credit that can be used repeatedly with the option of paying the balance in full or making monthly payments.
Revolving credit
Installment credit
Secured credit
Unsecured credit
Financial information compiled into a report that describes your credit history and financial responsibility.
Credit report
Bank statement
Income statement
Tax return
An organization that maintains files on consumers’ credit histories and financial responsibilities and prepares their credit scores.
Credit agency
Bank
Insurance company
Investment firm
Money borrowed to buy something now with the understanding that the money will be paid back in the future.
Credit
Loan
Debt
Mortgage
A three-digit number rating a consumer as a credit risk; A measure or “grade” of creditworthiness.
Credit score
Credit limit
Credit report
Credit history
Extra money in the form of fees and interest that a consumer pays in addition to the amount they borrowed.
Finance charges
Principal amount
Loan term
Credit score
The highest amount of money that can be charged on a credit card account.
Credit limit
Interest rate
Minimum payment
Annual fee
21. Which of the following are ways you can protect yourself from credit fraud?
Regularly monitor your credit report and set up fraud alerts.
Share your credit card information with trusted friends.
Use the same password for all your financial accounts.
Ignore suspicious account activity.
