Shroutrageous: Credit

The ability to borrow money is called

• credit

• debit

• budgeting

• investment

A credit card

• gives you permission to buy something now and pay it back later

• takes money out of your bank account automatically

• is a courtesy offered by the bank

• is an online payment service that allows consumers to transfer money automatically

A debit card

• gives you permission to buy something now and pay for it later

• automatically deducts money from your bank account

• provides gifts to get you to open a bank account

• is an online payment service that allows consumers to transfer money electronically

What is an advantage of using a credit card?

• You don't have to pay it back

• It takes money right from your bank account

• It can help build up a good credit score by building a credit history

• It can help you buy whatever you want when your money ran out for that month

What is a disadvantage of using credit?

• You can never pay it back.

• You often have to pay interest or extra fees, which can make things more expensive.

• It shows you're irresponsible.

• It's very hard to get a good credit score.

Which of the following is a potential risk of using a credit card?

• Building a good credit score.

• Overspending and accumulating debt.

• Having a fixed spending limit.

• Receiving monthly statements.

What is the primary purpose of a debit card?

• To borrow money from the bank.

• To make purchases using funds directly from your bank account.

• To earn rewards on every purchase.

• To invest in stocks and bonds.

If someone has an emergency and needs money, is it better to use their emergency savings or a credit card?

• It's better to use emergency savings, which is why you should save. But a credit card can be used in emergencies.

• It's better to use a credit card, but if you don't have one, use savings.

What is a credit report?

• A record of someone's financial history, showing if they can be trusted with credit

• A credit card bill with your expenses for the month

• A report of a credit card company's history, for you to look at before choosing a card

• A financial institution

Why is it a problem to have a bad credit score?

• You will be sent to jail.

• You can't graduate from high school.

• You might not get a loan for a house or a car.