What is the benefit of paying the full credit card balance each month quizlet?

Upgrade to remove ads

Only A$47.99/year

  • Flashcards

  • Learn

  • Test

  • Match

  • Flashcards

  • Learn

  • Test

  • Match

Terms in this set (15)

What are the two most important factors of your FICO Credit Score?

-Payment history and credit utilization

What are the ranges for Bad, Fair, Good, and Excellent Credit according to your FICO Credit Score?


What is included in your credit report?

contains personal information, credit account history, credit inquiries and public records

What are some negative effects of having bad credit?

Credit and loan applications may not be approved. ...
Difficulty getting approved for an apartment. ...
Security deposits on utilities. ...
You can't get a cell phone contract. ...
You might get denied for employment. ...
Higher insurance premiums. ...
Calls from debt collectors. ...

installment loan

used to finance a specific purchase for a specific amount of time. Regular payments are made to pay the interest and the principal.

revolving credit

an open line of credit that can be used for any purchases as long as you're under the credit limit. Payment amounts vary each pay period based on the size of the debt.

Secured debt

debt is tied to a specific asset that can be used as collateral and repossessed if borrower doesn't make payments

Unsecured debt

debt is not tied to a specific asset; there is no collateral that can be repossessed if borrower defaults


interest rate can change during the duration of the loan based on the prime rate or an index rate


interest rate remains constant during the duration of the loan

An Auto-loan with an interest rate that does not change is an example of what type of debt?

Installment, secured, and could be variable or fixed

What is the name of the box that has your credit card terms and information on it?

schumer box

Which best describes how a credit card works?
The credit card company extends you a line of credit.

You purchase "stuff" and then have the choice to pay the balance in full or a minimum payment each month.

What is the advantage of paying your credit card balance in full each month?

You pay only a small amount of interest.

Why is it more difficult to get out of debt when only paying the minimum payment?

Your entire minimum payment goes toward principal and the interest continues to compound.

Students also viewed


40 terms


Module 5.3: Credit Card Statement

10 terms


Credit Unit Material

56 terms


Schumer's Box

19 terms


Sets found in the same folder

Financial math

2 terms


financial math unit 4

16 terms


Financial Math Test Review

29 terms


Financial Math Taxes

15 terms


Other sets by this creator

Unit 1

102 terms


BLaw practice questions

55 terms



19 terms


pc test 22

83 terms


Verified questions

linear algebra

Let $T(x) = Ax$ for the given matrix A. Determine if T is one-to-one and if T is onto. $$ A=\left[\begin{array}{rr} 1 & -3 \\ -2 & 5 \end{array}\right] $$

Verified answer


In this exercise, solve the first-order linear differential equation. $$ (x+3)y^{\prime}+2y=2(x+3)^2 $$

Verified answer


*Simplify the given expression. Write each result using positive exponents only. See the discussed examples.* $$ \left(z^5 x^5\right)^{-3} $$

Verified answer


Write the first five terms of the arithmetic sequence. a$_{1}$ = 7, d = 5

Verified answer

Recommended textbook solutions

What is the benefit of paying the full credit card balance each month quizlet?

The Practice of Statistics for the AP Exam

5th EditionDaniel S. Yates, Daren S. Starnes, David Moore, Josh Tabor

2,433 solutions

What is the benefit of paying the full credit card balance each month quizlet?

Discrete Mathematics and Its Applications

7th EditionKenneth Rosen

4,285 solutions

What is the benefit of paying the full credit card balance each month quizlet?

A First Course in Abstract Algebra

7th EditionJohn B. Fraleigh

2,389 solutions

What is the benefit of paying the full credit card balance each month quizlet?

Calculus, Volume 2: Multi-Variable Calculus and Linear Algebra with Applications to Differential Equations and Probability

2nd EditionTom M. Apostol

1,036 solutions

Other Quizlet sets

Econ Chapter 1 Vocab

17 terms


Operations and Supply Chain Management -unit 2 mod…

41 terms



60 terms


What is the benefit of paying the full credit card balance each month?

No interest charges on your balance: Most credit card issuers charge interest or APR if you carry your balance over to the next month, which means you're paying interest on top of the unpaid balance you owe. You'll avoid paying interest if you pay your credit card balance off in full each month by the due date.

Why is paying your credit card balance in full so important quizlet?

Why is paying your credit card balance in full so​ important? You can avoid interest charges. Credit card interest rates tend to​ be: higher than rates on other debt.

Why should you pay your full credit card balance by the due date every month Apex?

If you always pay your full statement balance by the due date, you will maintain a credit card grace period and you will never be charged interest.

Why is it important to pay off a credit card in full each month or at least more than the minimum monthly payment?

While it's important to make at least the minimum payment, it's not ideal to carry a balance from month to month, because you'll rack up interest charges (unless you're benefiting from an intro 0% APR) and risk falling into debt.