Credit Cards

Front

What is a credit score?

Back

A numerical representation of a person's creditworthiness, based on their credit history.

Front

How does a high credit score affect interest rates?

Back

A high credit score typically allows lenders to offer lower interest rates.

Front

What is a credit limit?

Back

The maximum amount of credit that a financial institution extends to a client.

Front

Why do credit providers set credit limits?

Back

To prevent consumers from spending more money than they can pay back.

Front

What is an annual fee in relation to credit cards?

Back

A fee charged by a card issuer for being a cardholder, usually billed once a year.

Front

What is the minimum payment on a credit card?

Back

The smallest amount you can pay on your credit card bill to keep your account in good standing.

Front

What is the consequence of only paying the minimum payment?

Back

It can lead to accumulating interest and prolonging debt repayment.

Front

What does it mean to pay your credit card balance in full?

Back

Paying the total amount charged on your credit card each month, avoiding interest charges.

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.3

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Front

What is interest in the context of credit cards?

Back

The cost of borrowing money, expressed as a percentage of the outstanding balance.

Tags

CCSS.7.RP.A.3

Front

What is a late payment fee?

Back

A charge incurred when a credit card payment is not made by the due date.

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