Flashcard 2

Front

What is the major difference between debit cards and credit cards?

Back

Debit cards immediately deduct money from your account, while credit cards allow you to make payments later.

Front

Which of the following is a pro of using credit cards? Credit cards immediately deduct money from your account, Credit cards have safeguards against fraud, Credit cards do not help you build your credit history, Credit cards offer rewards and benefits

Back

Credit cards have safeguards against fraud

Front

Which type of card is recommended for someone who cannot handle the temptation of spending more than they have?

Back

Debit cards

Front

What is a con of using debit cards?

Back

Debit cards do not have safeguards against fraud.

Front

Why use a credit card over a debit card?

Back

You can build credit, earn rewards, and pay less than you owe.

Front

What is a credit card "minimum"?

Back

The least amount you need to pay back each month

Front

Each month you should...

Back

Pay full credit statement if you can

Front

What will NOT hurt your credit score? Missed payment, Late payment, Early payment, Having too many credit cards

Back

Early payment

Front

When you invest, the bigger the risk, the bigger the _____

Back

reward

Front

What is one common way identity theft happens? Options: Online shopping, Dumpster diving, Reading books, Exercising at the gym

Back

Dumpster diving