Credit Cards and Borrowing

Benefits of credit cards include:

• safe and convenient, bonuses are offered
• allows you to build a positive credit report
• needed for reservations and online shopping
• all of these

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

• creditworthiness
• credit report
• credit limit
• variable rate of credit

What is the best way to avoid credit card debt? Choose the best answer.

• Use several credit cards to avoid putting too much money on one card.
• Don't spend more money than you have.
• Only use credit cards to by 

The cost of borrowing money is referred to as 

• Interest 
• Annual Percentage Rate 
• Credit 
• Credit Line 

What is a good practice when it comes to credit cards?

• getting as many credit cards as possible

• paying only the minimum

• charging anything you want

• paying the amount charged in full each month

There’s no penalty if I pay my credit card balance after the due date.

• True

• False

Having a high credit score will allow lenders to give you lower interest rates.

• True
• False

Your credit score is not configured off of which of the following:

• Payment history
• Amount owed
• Where you live
• Length of credit history

Tags

CCSS.7.NS.A.2C

To build a good credit history, you should

• open as much credit as possible quickly
• use the maximum credit allowed on all your credit cards
• pay on time and as much of your balance as possible
• all of these

What does APR stand for?

• American Peoples Reports
• Annual Progress Report
• American Percentage Rate
• Annual Percentage Rate