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Credit Cards


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Credit Cards

  1. 1. Credit Cards MARISSA DORIA BLOCK 3
  2. 2. Credit  Money available for a client to borrow
  3. 3. Finance Charge  Finance Charge—Total dollar cost of credit, including interest and all other charges  Credit Companies may charge a finance charge to make you aware of the total cost of credit
  4. 4. Interest Rate  Interest rates credit card companies usually charge is 12%.  It is dangerous to pay the minimal amount each month because you are less likely to get your bill payed
  5. 5. Common Credit Card Companies  Visa  Discover  American Express  MasterCard
  6. 6. Credit Rating  It is important to know your credit rating so you know when you need to borrow money or when you need to make a major purpose.  Good Score: High 700’s  Bad Score: 499 and below  You get your credit rating score checked when you are trying to get a loan and/or applying for a job
  7. 7. Benefits of using a Credit Card  Convenience  Immediate Possession  Savings  Credit Rating  Useful for Emergencies
  8. 8. Problems concerned with Credit  Overbuying  Careless Buying  Higher Prices  Overuse of Credit
  9. 9. Calculating Interest  Interest = Principle x Rate x Time
  10. 10. Credit Application  Form on which you provide information needed by a lender to make a decision about granting credit  You often fill one out when you need a loan or are applying for job
  11. 11. Truth in Lending Law and Fair Credit Billing Act  First of a series of credit protection laws  Requires that you be told the cost of credit before signing an agreement  Fair Credit Billing Act—Law that gives consumers the right to know what information credit bureaus are giving to potential creditors, employers and insurers.