Financial Algebra 4-4
impulse buying
Buying on the spur of the moment, without planning
credit card
allows you to make purchases now and pay for them later
average daily balance
average of the daily amounts you owed during the billing period; most frequent way used to calculate credit card interest
revolving charge account
bill does not have to be paid in full each month but will be charged interest, minimum monthly payment
truth-in-lending act
if credit card is lost or stolen, you are only responsible for $50 of charges and no charges that occur after you notify credit card agency
debit card
money deducted from your bank account when you make a purchase, cannot make a purchase unless money is in there
charge card
type of credit extended by a store; looks like a credit card, but can be used only at the store that issued the card, no interest charged but must be paid in full
APR
yearly interest rate that your credit card charges
electronic funds transfer act
you are not responsible for purchases made with lost or stolen card after it has been reported missing