Share Credit Card Vocabulary Review 23-24
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A card that allows a person to make purchases and pay for it at a later time.
credit card
What is a cardholder?
The person who owns the credit card.
With a credit card, you are using ______ money. (your own or borrowed)
borrowed
Explain one benefit of owning/using a credit card.
Answers will vary. You can pay back, use for emegencies, get rewards, etc.
Explain credit score.
A score a person gets based on their loands, credit cards, and financial responsibility.
Why should a person be cautious when using credit cards?
Overspending, get into debt.
When a person has spend the highest amount of money a credit card will allow you to. The total amount you can borrow.
Credit Card Limit
What is it called when a person owes a lot of money to a bank?
Debt
When you use this card, you are using your own money.
ATM/Debit Card
If you spend more than you have in your checking account, you will:
Overdraft
When you have a loan, or credit card, the bank makes money by charging the cardholder:
interest
Explain credit card interest.
The bank charges you money for the purchases you make, based on your monthly balance. The higher your balance, the more money you will owe the bank.
Summarizes your credit history based on your financial behavior.
Credit Score
Amount of money owed on your credit card.
Balance
Give one example of a "reward" you can earn from using your credit card?
Points, hotels, miles, cash back
Give one example of when someone might run a credit report on you.
Car loan, mortgage, personal loan, apartment application
