Credit Cards

Front

What is the interest rate on a credit card?

Back

The interest rate is the percentage of the credit card balance that you are charged when using a credit card, also referred to as the Annual Percentage Rate (APR).

Tags

CCSS.7.RP.A.3

Front

What does the number 3 represent on a credit card?

Back

The number 3 represents the cardholder's name.

Front

What does the number 2 represent on a credit card?

Back

The number 2 represents the expiration date of the card.

Front

What is a credit card?

Back

A credit card is a payment card that allows the cardholder to borrow money to make purchases, with the obligation to pay back the full balance over time, usually with interest.

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Front

What is the minimum payment on a credit card?

Back

The minimum payment is the least amount you can pay to keep the card active; if you pay less, your card will be deactivated.

Front

What is the purpose of the Annual Percentage Rate (APR)?

Back

The APR represents the annual cost of borrowing on a credit card, including interest and fees, expressed as a percentage.

Tags

CCSS.7.RP.A.3

Front

What happens if you do not pay your credit card bill in full?

Back

If you do not pay your credit card bill in full, you will be charged interest on the remaining balance.

Front

What is the difference between a credit card and a debit card?

Back

A credit card allows you to borrow money to make purchases, while a debit card withdraws money directly from your bank account.

Front

What is a credit limit?

Back

A credit limit is the maximum amount of credit that a cardholder can use on their credit card.

Front

What is a late payment fee?

Back

A late payment fee is a charge imposed by the credit card issuer if the cardholder fails to make the minimum payment by the due date.