Fannie Mae Foundation: How to Buy a Home

Note to the teacher:
As students learn about the dangers and benefits of using credit and, in particular, credit cards, it’s important to work with real, or what is sometimes called “authentic” material. The following handout is meant to guide students through an actual credit card application form.

Handout: Questions You Might Want to Ask
if You Are Applying for a Credit Card

Lavaun Moulten, San Diego Community College, San Diego, CA

1. What is the interest rate on the credit card?

2. Is the rate quoted a promotional or introductory rate?

3. If it is an introductory rate, what is the length of time of the promotional rate?

4. Does the credit card company charge an annual fee on the credit card?

5. Are there any penalties if the card is not used for a period of time?

6. Is there a penalty if the credit card holder goes over the limit?

7. Can the payment due date be changed if the card holder needs to for some reason?

8. Is the interest rate for the credit card a fixed rate or is it a variable rate?

9. Would the interest rate be different if I needed cash advances?

10. What is the length of time of the grace period?

11. How do your rates compare with other institutions?

12. Who would I talk to if there were problems or questions I might have about my credit card bill?

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