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Credit Card & Debt Review

  •   0%
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  • Explain one benefit of owning/using a credit card.
    Answers will vary. You can pay back, use for emegencies, get rewards, etc.
  • When you use this card, you are using your own money.
    ATM/Debit Card
  • A person has a credit score of 810. Is this a weak score or a strong score?
    Strong
  • Why should a person be cautious when using credit cards?
    Overspending, get into debt.
  • Why do people set up bank alerts?
    To prevent fraud and make sure they are keeping up with their finances.
  • A person has a credit score of 300. Is this a weak score or a strong score?
    Weak
  • Give 1-2 examples of bank notifications.
    Suspicious activity, low balance, overdraft fee, large purchase, transfer
  • Credit or Debit: Earning rewards for the money you spend.
    Credit
  • If you spend more than you have in your checking account, you will:
    Overdraft
  • What happens when a house goes into foreclosure? What does this mean?
    The home owner has not made payments and the bank is in the process of taking it over.
  • What is a cardholder?
    The person who owns the credit card.
  • Give one example of a "reward" you can earn from using your credit card?
    Points, hotels, miles, cash back
  • What does it mean if a person has "maxed out their credit card"?
    They have charged the maximum amount possible.
  • Explain credit score.
    A score a person gets based on their loands, credit cards, and financial responsibility.
  • What would a debt collector call you?
    You haven't missed a payment, or several payments and the bank is looking for your money.
  • What is it called when a person owes a lot of money to a bank?
    Debt
  • Credit or Debit: Having to pay a bill for the money you spent on a card.
    Credit
  • 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.
  • 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 are some reasons people end up in debt?
    Credit card, mortgage, car payments, poor budgeting, medical bills
  • Credit or Debit: Using your own money.
    Debit
  • A card that allows a person to make purchases and pay for it at a later time.
    credit card
  • Amount of money owed on your credit card.
    Balance
  • With a credit card, you are using ______ money. (your own or borrowed)
    borrowed
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