Credit And Non-cash Alternatives

Your parents have decided to send you on last-minute trip to North Dakota for April vacation.  They are debating on whether to let you borrow their debit card or to purchase a pre-paid card for your use.  Your objective is to show them that you've been actively involved in your Personal Finance class by clearly explaining your understanding of how each cash alternative works, alongside the advantages and disadvantages of each.   In the process, you are hoping they will see how responsible you are and allow you to go to Florida.

Steve opened his first credit card last August with a credit line or limit of $500.  To date, he has charged in excess of $2000 on the card.  How can that be?  Explain. Be certain to include a numeric representation in your response. 

An example of an open-end credit is a(n)_____.

Credit card holders are known as convenience users when they ________.

Which of the "five C's of credit" requires that a person's assets exceed his or her liabilities?

A ____________ is a  type of promotional rate required to last at least six (6) months and is designed to entice new clients with "benefits" such as a low initial rates and 0% rate on balance transfer.

The _______ requires credit card companies to give their cardholders at least 45 days notice of interest rate, fee and finance charge increases.

_________ fee is charged to a credit card holder yearly for the privilege of "holding" the card.

______ is quoted annually but applied monthly to outstanding balances on a credit card.

________ is the cost of borrowing, including interest and fees, and is expressed in a dollar amount.