Chapter 7 Vocabulary

What is a credit card?

• A card that allows you to buy items now and pay for them later

• The cash borrowed from a credit card account

• A fee you pay each month for borrowing money

What does monthly statement mean?

• A list of weekly transactions
• A form like a bank statement sent by your credit card company to bill you for what you owe every month and to update you on the status of your account.

• A report of yearly income

What does the term "minimum payment" refer to?

• The most money you can borrow on a credit card

• The amount of a return or payment on a monthly statement

• The least amount of your balance that you must pay to the credit card company each month

Who is a co-applicant?

• A person who applies with you for a credit card account

• The amount you can still charge on your card

• A fee you pay each month for borrowing money

What is meant by "balance" in the context of credit cards?

• The most money you can borrow on a credit card

• The total amount of money you owe on your account

• The amount of a return or payment on a monthly statement

What is a finance charge?

• The cash borrowed from a credit card account

• A fee you pay each month for borrowing money; it is based on a certain percent of the balance not paid

• The amount of a return or payment on a monthly statement

What does APR stand for?

• Annual Percentage Rate

• Available Payment Rate

• Account Payment Requirement

• Automated Payment Reminder

What is the "credit limit"?

• The amount of a return or payment on a monthly statement

• The cash borrowed from a credit card account

• The most money you can borrow on a credit card

How is "available credit" defined?

• The cash borrowed from a credit card account

• The amount you can still charge on your card; the difference between the credit limit and the balance on your account

• The least amount of your balance that you must pay to the credit card company each month

What does "credit" refer to on a monthly statement?

• The cash borrowed from a credit card account

• The total amount of money you owe on your account

• The amount of a return or payment on a monthly statement