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  • 09 Reading - How Do Credit Cards Work

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    Juanfer Sandoval
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    The document provides guidance on learning about how credit cards work through reading an article, defining key vocabulary terms, and completing reading activities. It instructs learning how credit cards differ from debit cards, the order of steps in a credit card transaction, definitions of terms like credit limit and grace period, and tips for responsible credit card use and building credit history. It also includes exercises for role playing an explanation of credit cards and presenting research findings on teaching kids about responsible credit card habits.

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    09 Reading - How do Credit Cards Work

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    The document provides guidance on learning about how credit cards work through reading an article, defining key vocabulary terms, and completing reading activities. It instructs learning how credit cards differ from debit cards, the order of steps in a credit card transaction, definitions of terms like credit limit and grace period, and tips for responsible credit card use and building credit history. It also includes exercises for role playing an explanation of credit cards and presenting research findings on teaching kids about responsible credit card habits.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    7 views3 pages

    09 Reading - How Do Credit Cards Work

    Uploaded by

    Juanfer Sandoval
    The document provides guidance on learning about how credit cards work through reading an article, defining key vocabulary terms, and completing reading activities. It instructs learning how credit cards differ from debit cards, the order of steps in a credit card transaction, definitions of terms like credit limit and grace period, and tips for responsible credit card use and building credit history. It also includes exercises for role playing an explanation of credit cards and presenting research findings on teaching kids about responsible credit card habits.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 3

    Learning & Development Guatemala

    How Do Credit Cards Work?


    Speaking

    What do know about how credit cards work?

    Vocabulary

    Look up the words before reading the article:

     Trigger

     Fine print

     Card issuer

     Merchant

     Inquiries

     Liability

     Accrue

     Linked to

     Boost

     Annualized

    Reading

    Go to the article: https://www.investopedia.com/how-do-credit-cards-work-5025119

    Do each of the reading activities.

    Reading Activity 1

    Read the article. What are the main differences between credit and debit cards?

    © 2021 [24]7.ai, Inc. All Rights Reserved. <1>


    Learning & Development Guatemala

    Reading Activity 2

    Read the article. Put the steps of how a credit card works in the right order.

    _____ The bank then gets authorization from the credit card network to process
    the transaction.
    _____ Card details are sent to the merchant's bank.
    _____ The payment is made to the merchant
    1 Open a credit card account.
    _____ You pay your bill in full by the due date or your card issuer charges you
    interest.
    _____ Make purchases online or in stores and pay bills.
    _____ Your card's available credit is reduced by the transaction amount.
    _____ Your card issuer sends you a statement.
    _____ Your card issuer then has to verify your information and either approve or
    decline the transaction.

    Reading Activity 3

    Read the article again. Answer the questions:

    1. What is a credit limit?

    2. What is the difference between a secured and unsecured credit card?

    3. What is a grace period?

    4. What sets the guidelines on when credit card companies can and can’t change a
    card’s APR?

    5. For which type of card does Federal law offer more fraud protections?

    6. How does a credit card help you build a strong financial history and better credit?

    7. How does a person shop for credit cards?

    © 2021 [24]7.ai, Inc. All Rights Reserved. <2>


    Learning & Development Guatemala

    Role Play

    Many people don’t know how a credit card works. Using the information from the article,
    create a role play in which one person describes how a credit card works to an
    unknowing friend or family member.

    Online Research

    In the United States, it is vital to start building your credit score from a young age.
    Therefore, using credit cards while young is very important. Research some tips online
    on how to teach kids about credit cards. You will have 20 minutes to research. After
    looking up information online, present your findings to the class.

    © 2021 [24]7.ai, Inc. All Rights Reserved. <3>

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