Understanding Credit Card Statements
A worksheet for Grade 9 students to learn how to read and interpret credit card statements, focusing on key terms and calculations.
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Understanding Credit Card Statements
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Date:
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Read each question carefully and answer to the best of your ability. This worksheet will help you understand the components of a credit card statement and basic financial literacy terms.
1. The is the total amount of money owed on a credit card at the end of a billing cycle.
2. The is the smallest amount of money you must pay by the due date to avoid late fees.
3. APR stands for .
4. A is a period during which no interest is charged on new purchases if the full balance is paid on time.
1. Paying only the minimum payment each month will help you pay off your credit card balance quickly.
True
False
2. Credit card interest rates are usually lower than interest rates on car loans.
True
False
1. Which of the following is NOT typically found on a credit card statement?
Current Balance
Minimum Payment Due
Credit Score
Annual Percentage Rate (APR)
2. If you have a credit card with a $1,000 credit limit and you have used $300, what is your available credit?
$300
$700
$1,000
$0
1. Explain the difference between 'Current Balance' and 'Minimum Payment Due' on a credit card statement.
2. Describe one potential consequence of only paying the minimum payment on your credit card each month.
Scenario: Sarah has a credit card with an APR of 18%. Her current balance is $500. She makes a minimum payment of $25.
1. If Sarah only pays the minimum payment, will she be charged interest on the remaining balance?
2. What is the main benefit of paying the full balance each month?