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Credit Card Terms Review

Drag the credit card term to the definition that best fits it.

Definitions:

  1. Many credit cards will try to woo new customers by offering a low interest rate.
  2. A fee charged to use the credit card. These fees are most common on "rewards" cards.
  3. If your payment is received after the due date, you will be charged this fee, usually around $36.
  4. The maximum dollar amount you can charge on your account. It is also called your limit.
  5. The smallest amount you can pay each month.
  6. Usually a month; your transactions are recorded and sent to you on a statement
  7. A summary of all your transactions. Will also include the due date of your payment.
  8. If you pay your balance in full beofore the due date during this period, you will not be charged interest.
  9. The interest rate, expressed in a yearly amount.

Terms:

  • Introductory Period
  • Annual Fee
  • Late Payment
  • Credit Line
  • Minimum Payment
  • Billing Cycle
  • Statement
  • Grace Period
  • APR

Answers:

  1. Introductory Period

    Answer: Many credit cards will try to woo new customers by offering a low interest rate.

  2. Annual Fee

    Answer: A fee charged to use the credit card. These fees are most common on "rewards" cards.

  3. Late Payment

    Answer: If your payment is received after the due date, you will be charged this fee, usually around $36.

  4. Credit Line

    Answer: The maximum dollar amount you can charge on your account. It is also called your limit.

  5. Minimum Payment

    Answer: The smallest amount you can pay each month.

  6. Billing Cycle

    Answer: Usually a month; your transactions are recorded and sent to you on a statement

  7. Statement

    Answer: A summary of all your transactions. Will also include the due date of your payment.

  8. Grace Period

    Answer: If you pay your balance in full beofore the due date during this period, you will not be charged interest.

  9. APR

    Answer: The interest rate, expressed in a yearly amount.