Word bank: already · balance · dates · immediate · statement

1. Pay the full balance and you usually pay $0 in interest.
2. Due are at least 21 days after the statement is sent.
3. Utilization = ÷ limit. Keep it low.
4. Cash advances cost a fee plus interest.
5. Only charge what you have.

1. Your statement balance is $180 and the minimum payment is $25. You pay $180 before the due date.

   1. How much interest do you pay on those purchases?

   • A. $0
   • B. About $3
   • C. $25
   • D. It depends on your credit score

2. Your card has a $500 limit, and your statement balance is $400.

   2. What's your credit utilization?

   • A. 20%
   • B. 40%
   • C. 125%
   • D. 80%

3. 3. A cash advance from a credit card gets the same interest-free grace period as a regular purchase.

   True/False

1. 1. Your statement balance is $420 and the minimum payment is $30. How much should you pay to owe no interest?

2. 2. Your limit is $2,000 and your balance is $600. What's your utilization?

1. 1. Card companies make money from interest and fees. How can a card be free for someone who pays in full?

2. 2. What rules would you set for yourself with a first credit card?