Quiz about Credit Card Vocab

Question 1

The cost of credit

Accepted Answer

Interest

Answer

Principal

Answer

Introductory Rate

Answer

Finance Charge

Question 2

The smallest amount a borrower is required to pay each month. Each company has its own policy about this payment. 3-5% of the balance owed is a common minimum.

Accepted Answer

Minimum Payment

Answer

Late Payment Fees

Answer

Credit Card

Answer

Annual Fee

Question 3

The way the card company figures the amount charged to the account each month. This figure is used to determine the minimum payment and how much interest will be charged each month.

Accepted Answer

Method of Calculating Balance

Answer

Annual Fee

Answer

Introductory Rate

Answer

Minimum Payment

Question 4

The dollar amount the card company charges once a year for the right to use a credit card. Many companies , but not all, charge this fee.

Accepted Answer

Annual Fee

Answer

Finance Charge

Answer

Minimum Payment

Answer

Checks and Check Book

Question 5

Looks like a credit card but acts like a check. It enables the owner to draw funds form a checking account in real time.

Accepted Answer

Debit Card

Answer

Checks and Check Book

Answer

Minimum Payment

Answer

Credit Card

Question 6

A rating based on how promptly a person pays his/her debts.

Accepted Answer

Credit Rating

Answer

Credit Score

Answer

Principal

Answer

Credit

Question 7

An agreement to provide, goods, services, or money in exchange for future payments with interest by a specific date or according to a specific schedule. It's basically using someone else's money for a fee.

Accepted Answer

Credit

Answer

Credit Card

Answer

Minimum Payment

Answer

Introductory Rate

Question 8

The amount of money someone is willing to loan you. Also the amount that is still owed on a loan.

Accepted Answer

Principal

Answer

Amortization Table

Answer

Finance Charge

Answer

Introductory Rate

Question 9

Extra charges that the bank issues someone for obtaining credit. They can include charges for carrying a balance, transferring a balance, requesting a cash advance or making a foreign transaction.

Accepted Answer

Finance Charge

Answer

Annual Fee

Answer

Interest

Answer

Credit Card

Question 10

A rating used by credit reporting companies to help lenders decide whether and/or how much credit can be extended to a borrower.

Accepted Answer

Credit Score

Answer

Credit Card

Answer

Credit Rating

Answer

Late Payment Fees

Question 11

A lower interest rate offered on a new credit card, usually the first 6 months. After the introductory period, the interest rate increases.

Accepted Answer

Introductory Rate

Answer

Late Payment Fees

Answer

Minimum Payment

Answer

Credit

Question 12

A written, dated, and signed document that orders a bank to pay a specific amount of money from a person's account to the person in whose name the check has been issued.

Accepted Answer

Checks and Check Book

Answer

Annual Fee

Answer

Debit Card

Answer

Amortization Table

Question 13

A fixed table that shows how much of your fixed monthly loan payment goes toward interest and goes toward the principal until the loan is paid off.

Accepted Answer

Amortization Table

Answer

Principal

Answer

Credit Card

Answer

Annual Percentage Rate (APR)

Question 14

The length of time a cardholder has to pay a bill and avoid and interest charge - typically 23-30 days. A few cards have no grace period and charge interest from the day the card is used. Many cards have a grace period for purchases but start charging interest on cash advances immediately. There are some cards have no grace period.

Accepted Answer

Grace Period

Answer

Finance Charge

Answer

Minimum Payment

Answer

Late Payment Fees

Question 15

A fee assessed for paying the minimum balance of a credit after the due date.

Accepted Answer

Late Payment Fees

Answer

Credit Card

Answer

Introductory Rate

Answer

Minimum Payment

Question 16

A plastic card that provides credit in exchange for a future payment with interest hat is to be paid on a specific schedule.

Accepted Answer

Credit Card

Answer

Minimum Payment

Answer

Credit Score

Answer

Late Payment Fees

Question 17

The interest rate charged on a yearly basis. Usually , the lower the APR, the lower the cost of the credit.

Accepted Answer

Annual Percentage Rate ( APR)

Answer

Amortization Table

Answer

Minimum Payment

Answer

Annual Fee

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