What is credit?
Money borrowed now with the understanding it will be paid back later
What fee will you pay if you go over your credit limit?
Grace period fee
Minimum payment fee
Over the limit fee
introductory fee
What is an example of revolving credit?
A credit card
A student loan
A home loan
A debit card
What is an advantage of using credit?
Example: You can buy expensive stuff and pay later
What means how trusted you are to pay back money you borrow?
Creditworthiness
Credit risk
Open ended credit
FICO
What is a credit score?
A three digit number rating a consumer's creditworthiness.
A home run
A number on the back of your credit card
An ID number the bank gives you
The highest amount that can be charged to a credit card is called...
Your credit limit
Your APR limit
Your free period limit
Your line of credit
What is non revolving credit?
Credit that can be closed. Once you pay it off, you can forget about it
What is revolving credit?
A line of credit that can be used over and over again
The least amount of money required to be paid on a line of credit is called
Credit Score payment
Grace period payment
Maximum payment
Minimum payment
What is the annual interest rate you'll be charged if you carry a balance on your credit card?
Credit agency rate
Annual percentage rate
Introductory rate
Over the limit rate
What is a teaser rate and why would credit card companies use one?
A teaser rate is a lower introductory rate used to lure customers so credit card companies can raise the rate later
Introductory rates are also known as
teaser rates
minimum payments
annual percentage rates
annual fee rates
Which term means interest and all other fees added on to credit purchases?
Annual Percentage Rate (APR)
Annual Fee
Finance charges
Introductory Rate
What is an example of non- revolving credit?
A personal loan
A credit card
A home equity loan
A home loan