CREDIT VOCABULARY TERMS
Take Charge of Credit Cards
Credit Card- A plastic card that holds pre-approved credit Interest- The price of money- when referring to credit, interest is the charge for borrowing money. Credit Limit- Maximum amount of money that can be charged on the card. APR- Annual Percentage Rate- interest rate charged on a credit card, the lower the better. Minimum Payment- Minimum amount of a credit card bill that must be paid every month. Interest Charges Avoided on Credit Cards- Pay the full amount each month. Debit Card- Has a restricted amount of money according to the amount of money you put onto the card and can't be spent anymore once all of the money put on it is used. Steps Involved With Getting A Credit Card-
Advantages and Disadvantages of Credit Cards Advantages-
Responsible Credit Card Use Do-
Don't-
Credit Card Statements- summarizes important information from previous months.
Credit Card Safety Tips-
Late Payment Fee- Charged when the minimum payment isn't paid by the due date. Over the Limit Fee- Charged if the amount of transactions goes over credit limit. Penalty APR- Higher interest rate charged on new transactions. |
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