Podcast
Questions and Answers
Most car rental companies require a major ______ card to secure the rental.
Most car rental companies require a major ______ card to secure the rental.
credit
If you pay your account in full each month during the ______ period, you will not be charged interest on your credit card purchases.
If you pay your account in full each month during the ______ period, you will not be charged interest on your credit card purchases.
grace
A provision called universal ______ allows the card company to charge a higher interest rate if your credit score decreases.
A provision called universal ______ allows the card company to charge a higher interest rate if your credit score decreases.
default
Stealing your Social Security number is a way someone could commit identity ______.
Stealing your Social Security number is a way someone could commit identity ______.
You can request a(n) ______ freeze to protect your credit report if you report identity theft.
You can request a(n) ______ freeze to protect your credit report if you report identity theft.
Flashcards
Credit Card Grace Period
Credit Card Grace Period
A period before interest is charged on credit card purchases if the account is paid in full.
Credit Fraud
Credit Fraud
Using someone else's credit card information to make fraudulent purchases.
Identity Theft
Identity Theft
Stealing someone's personal information like Social Security number to open new accounts in their name.
Security Freeze
Security Freeze
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Universal Default
Universal Default
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Study Notes
Credit Card Benefits and Risks
- Credit allows you to buy things without immediate cash.
- Rental car companies often require a credit card for security.
- No interest is charged if the balance is paid in full within the grace period.
- Credit card contracts might include a universal default clause, allowing higher interest rates if your credit score drops.
- Excessive debt can lead to bankruptcy.
Credit Card Fraud
- "Dumpster diving" allows access to old credit card bills for fraud.
- Stealing a Social Security number is a form of identity theft.
Credit Report Management
- Monitor your credit history to ensure accuracy.
- A security freeze can protect your credit report from fraud.
- You are not liable for credit fraud debts if you are not the debtor.
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Description
Explore the crucial benefits and potential risks associated with credit cards in this quiz. Understand how credit cards work, the importance of monitoring your credit report, and learn about credit fraud. Equip yourself with knowledge to make informed financial decisions.
