Financial Math: Credit Cards

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What does the term APR stand for?

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APR stands for Annual Percentage Rate, which is the yearly interest rate you will be charged on your credit card balance.

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CCSS.7.RP.A.3

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Who is required to provide the Schumer box?

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All credit card issuers are required to provide the Schumer box.

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CCSS.6.RP.A.3A

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What specific information is required to be displayed in the Schumer box?

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The Schumer box must display APR, annual fees, grace period, and other penalties and fees.

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CCSS.3.NF.A.3D

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What is the minimum payment on a credit card?

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The minimum payment is the smallest amount you can pay each month to keep your account in good standing.

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CCSS.7.RP.A.3

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What is a grace period in credit card terms?

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A grace period is the time during which you can pay your balance in full without incurring interest.

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CCSS.7.RP.A.3

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What is a credit card fee?

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A credit card fee is a charge that may be applied for various actions, such as late payments or cash advances.

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CCSS.7.RP.A.3

Front

What is the consequence of paying your credit card bill late?

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Paying your credit card bill late can result in late fees and increased interest rates.

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What is a cash advance on a credit card?

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A cash advance is when you use your credit card to withdraw cash, often incurring fees and higher interest rates.

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What is the difference between a secured and unsecured credit card?

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A secured credit card requires a cash deposit as collateral, while an unsecured credit card does not.

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What is the purpose of a credit limit?

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A credit limit is the maximum amount you can borrow on your credit card.