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