Understanding Credit Cards

What is a credit card?

• A gift card you can use at any store

• A card that gives you free money

• A card that lets you borrow money to buy things

• A card that only works online

When you use a credit card, whose money are you spending?

• Your best friend’s money

• Your own cash from your wallet

• The bank’s money (you borrow it)

• The store’s money

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What happens after you use a credit card to buy something?

• You get free points and never pay

• You get a bill and have to pay the bank back

• The store keeps your card

• You don’t have to do anything

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Is a credit card free money?

• Yes, you never pay it back

• No, you have to pay it back

• Yes, only if you spend less than $100

• Only during holidays

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If you don’t pay your full credit card bill, what can happen?

• The bank sends you a thank-you note

• The store gives you a refund

• You pay extra money called interest

• Nothing happens

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Which of these is the BEST way to think about a credit card?

• A tool that lets you borrow and must pay back

• A magic card that gives free stuff

• A pass to skip paying for things

• A way to never use real money again

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What is the extra money called that you pay if you don’t pay your credit card bill in full?

• Bonus

• Interest

• Discount

• Reward

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If you pay your credit card bill late, what is likely to happen?

• You get a prize

• You may have to pay a late fee or interest

• The store gives you a discount

• Nothing changes

Why do banks let you use credit cards?

• To give away free money

• To help you borrow money and earn interest

• To make shopping harder

• To replace cash

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Which of these is a good habit when using a credit card?

• Paying only the minimum amount each month

• Ignoring your bill

• Paying your bill in full every month

• Letting someone else use your card