Credit Card Knowledge Flashcards

Front

What is one advantage of having a credit card?

Back

It allows you to make purchases without carrying lots of cash.

Front

What happens when you don't have enough money to pay for the things you charged?

Back

You end up owing more than the original amount of money you charged.

Front

Why would your credit provider give you a credit limit?

Back

To prevent you from spending more money than you can pay back.

Front

When you make a credit card purchase at a store, who do you agree to pay?

Back

Your credit provider.

Front

How do credit card companies make money?

Back

By charging late fees and interest to their customers.

Front

How is charging a purchase like getting a loan?

Back

You borrow money from your credit provider.

Front

The cost of credit expressed as a yearly interest rate is known as:

Back

Annual Percentage Rate (APR)

Front

Benefits of credit cards include:

Back

all of these

Front

The maximum amount you may borrow on a credit card is known as:

Back

credit limit

Front

What is an annual fee?

Back

A fee charged by a card issuer for being a card holder.