Using Credit Cards
- englishiseasierwithamal.com
- 7 hours ago
- 4 min read
Using Credit Cards
Read the practise the following conversation
Sue: Hi Omar. I saw you paying with a credit card. Do you use it often?
Oliver: Yes, I do. I use my credit card for groceries and sometimes for online shopping.
Sue: I just got my first credit card, but I don’t know much about it.
Oliver: The most important things to check are the interest rate, the due date, and your credit limit.
Sue: What does credit limit mean?
Oliver: It’s the maximum amount of money you can spend on the card.
Sue: Oh, I see. My card also has an annual fee.
Oliver: Some cards have that. It’s a yearly cost for using the card. Some cards also give cashback when you buy things.
Sue: That sounds good!
Oliver: Yes, but be careful with cash advances. If you take cash from your credit card, the interest rate is usually higher.
Sue: The company also told me I can make a minimum payment every month.
Oliver: That’s true, but it’s better to pay the full balance before the due date. Otherwise, you pay more interest.
Sue: I’m trying to follow a budget.
Olivar: Good idea. A financial planner once told me to use credit cards carefully and only spend what I can pay back.
Sue: Yes, I don’t want to get into debt.
Oliver: Exactly. Credit cards are useful, but you must use them responsibly.
I. Match the word with the correct meaning.
1. Interest rate
2. Annual fee
3. Due date
4. Minimum payment
5. Budget
6. Financial planner
7. Credit card
8. Balance
9. Debt
10. Interest
11. Online shopping
12. Cashback
13. Statement
14. Cash advance
15. Credit limit
Meaning:
A. The maximum amount you can spend
B. Cash taken from a credit card
C. A monthly report of your card activity
D. Money returned to you after purchases
E. Taking cash from your credit card
F. Money charged every year for the card
G. The total money you owe
H. A card used to borrow money to pay
I. A person who helps manage money
J. Buying things on the internet
K. Extra money charged for borrowing
L. Money you owe
M. The smallest amount you must pay
N. The last day to pay your bill
O. A plan for how you spend your money
II. Answer the following questions:
1. Why does Oliver suggest checking the interest rate before using a credit card?
__________________________________________________________________________
2. What could happen if Sue does not pay her balance before the due date?
__________________________________________________________________________
3. Why is paying the full balance better than paying the minimum payment?
__________________________________________________________________________
4. Why do some people like credit cards that offer cashback?
__________________________________________________________________________
5. Why should people be careful with cash advances?
__________________________________________________________________________
6. Why is it important to know your credit limit?
__________________________________________________________________________
7. Why is Sue trying to follow a budget?
__________________________________________________________________________
8. What advice did the financial planner give Olivar?
__________________________________________________________________________
9. Why might online shopping make people spend more money?
__________________________________________________________________________
10. How can cashback help someone save money?
__________________________________________________________________________
11. Why do credit card companies allow minimum payments?
__________________________________________________________________________
12. What might happen if someone spends more than their credit limit?
__________________________________________________________________________
13. Why do some credit cards charge an annual fee?
__________________________________________________________________________
14. How can a credit card statement help people manage money?
__________________________________________________________________________
15. Why does Oliver say credit cards must be used responsibly?
__________________________________________________________________________
III. Fill in the blanks with the correct word.
interest - due date - annual fee - credit card - budget - balance - minimum payment - financial planner - statement - debt - cashback - interest rate - online shopping - cash advance - credit limit
1. Sue used her __________ to pay for dinner.
2. The __________ is the last day to pay your bill.
3. If you don’t pay on time, you will be charged __________.
4. Oliver checks the __________ before choosing a credit card.
5. Some cards charge an __________ every year.
6. Sue is trying to follow a __________ to control her spending.
7. The __________ shows your monthly credit card activity.
8. Some credit cards give __________ when you buy things.
9. If you only pay the __________, you will still owe money.
10. A __________ can help people make better money decisions.
11. The __________ is the total amount you owe on your card.
12. Taking cash from a credit card is called a __________.
13. Buying things on the internet is called __________.
14. If you spend too much, you may have a lot of __________.
15. The __________ is the maximum amount you can spend on your card.
IV. Each sentence has incorrect information. Find it and correct it.
1. A credit card is used only to store money safely.
2. The interest rate tells you the last day to pay your bill.
3. The due date is the amount you owe on your card.
4. The annual fee is the amount of cashback you receive.
5. A minimum payment means you must pay the full balance.
6. A budget is a type of credit card.
7. A financial planner is someone who gives cash advances.
8. Interest is money the credit card company gives you for shopping.
9. Online shopping means taking money from a cash advance machine.
10. A credit card statement is a plan for spending money.
11. Debt means the credit card company owes you money.
12. The balance is the yearly fee for using a credit card.
13. Cashback is money you borrow from your credit card.
14. A cash advance means you receive money back after shopping.
15. A credit limit is the amount of interest you pay every month.
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