Credit card

Question 1

financial tool issued by banks or financial
institutions that allows cardholders to borrow funds to make purchases, pay for services, or withdraw cash, typically up to a certain limit.

Answer 1

Credit card

Question 2

The maximum amount that can be borrowed using the card.

Answer 2

Credit limit

Question 3

The annual percentage rate charged on the outstanding balance if not paid in full by the due date.

Answer 3

Interest rate (APR)

Question 4

The smallest amount you are required to pay each month to keep the account in good standing.

Answer 4

Minimum payment

Question 5

Many credit cards offer rewards such as cash back, points, or miles for every dollar spent. Some also
come with additional benefits like travel insurance, purchase protection, and extended warranties.

Answer 5

Rewards and Benefits

Question 6

Credit cards may have various fees, including annual fees, late payment fees, foreign transaction fees, and balance transfer fees.

Answer 6

Fees

Question 7

The time between the end of a billing cycle and the due date, during which you can pay your balance in full without incurring interest.

Answer 7

Grace period

Question 8

Responsible use of a credit card can help build or improve your credit score, while missed payments or high balances can negatively affect it.

Answer 8

Credit score impact