SlideShare a Scribd company logo

Understanding credit cards_power_point_2.6.3.g1

•Download as PPTX, PDF•
•
J
Jamie Norton, MEd

Notes/Content

Education
1 of 46
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Understanding Credit Cards Advanced Level
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 2 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 What is a Credit Card? Is a credit card open-end or closed-end credit? Credit card - a plastic card that you can use to access a line of credit that has been established in advance A person can borrow up to an established credit limit. Credit limit – maximum dollar amount that can be borrowed.
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card Interest The cost of credit expressed as a yearly interest rate Rate at which interest is charged is referred to as: Annual Percentage Rate (APR) Interest is charged each month the balance is not paid in full
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Minimum Payment Payment Made Time to pay off card Total amount of interest paid Total amount paid Full Payment $1,500 1 month $0 $1,500 Partial Payment $135 1 year $125 $1,625 Minimum Payment $30 11 years $1,413 $2,913 To prepare for her first semester of college, Miranda purchased a new computer for $1,000 and textbooks for $500, spending a total of $1,500 on her credit card charging 15% APR. How much would Miranda pay in interest if she makes the minimum payment? A minimum payment is due each month the card has a balance
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card = Helpful Financial Management Tool …if managed responsibly Develop positive credit history Convenient payment tool Protected from unauthorized charges Credit card safer for online shopping Credit card bonuses
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Pay credit card balances in full every month Pay credit card bills on time Be conscious of how credit cards affect your credit history Check the monthly credit card statement for errors Develop a Positive Credit History Credit card use can have a positive or negative impact on your credit history Follow these positive behaviors:
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 No need to carry large amounts of cash Useful in emergencies Often required to hold a reservation Convenient Payment Tool How is a credit card a convenient payment tool? Be conscientious of all credit card purchases to not overspend!
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Maximum Liability $50 Unauthorized use $0 If a lost credit card is reported before it is fraudulently used If the credit card number is used fraudulently, but the credit card itself is not used Protect Yourself from Unauthorized Charges Report lost or stolen cards immediately! Check your statements monthly!
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Safer Online Shopping More protection against fraud Less liability for unauthorized credit card charges Credit cards are safer than debit cards Money is not connected to depository institution account What is the difference between a credit card and a debit card?
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Should you choose “debit” or “credit” at a point of sale (POS)? Point of Sale If you pick “credit” A receipt must be signed (optional if purchase is under $25) Potential benefit: Extra liability protection from fraudulent charges If you pick “debit” Must enter the card’s personal identification number (PIN) Potential benefit: Option to withdraw cash from your depository institution account for no fee
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Rewards, Rewards, Rewards… Cash rebates Airline miles Warranties for items purchased Travel insurance Additional Benefits Would you be willing to pay higher/additional fees or higher interest rates to obtain credit card benefits? Explain. May charge additional fees or higher interest rates Carefully evaluate if the benefits outweigh the cost
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 12 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Cards Advantages & Disadvantages How many advantages can you think of? How many disadvantages can you think of?
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 13 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Cards Advantages & Disadvantages • Convenient payment tool • Useful for emergencies • Often required to hold a reservation • Able to purchase “big ticket” items and spread out payments • Protection against fraud • Opportunity to establish a positive credit history • Online shopping is safer than using a debit card • Possibility of receiving bonuses • Interest can be costly when a balance is revolved • Additional penalty fees may apply • Tempting to overspend • If not used responsibly, it will have a negative impact on your credit score
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 14 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card Offers Credit card issuers are required to disclose the terms and fees of credit cards in an easy to read box format Called the Schumer Box
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 15 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Annual Percentage Rate (APR) for Purchases • Interest rate paid for purchases • Multiple interest rates may be listed o final interest rate may depend on creditworthiness of applicant Credit cards may charge many different types of interest rates
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 16 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill How does credit worthiness impact APR? It will influence if a person receives a credit card and the APR. APR will by higher if a person has a poor credit history. Introductory Rate • Introductory rate: APR that may be charged (usually increased) after the introductory period ends • Not all credit cards have an introductory rate
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 17 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Would you prefer a fixed or variable rate credit card? Why? Fixed vs. Variable-rate APR • Fixed-rate APR: cannot change during the period of time outlined in a credit card agreement • Variable-rate APR: may change depending on other factors (such as economic conditions)
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 18 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill APR for Balance Transfers & Cash Advances • Balance transfer: act of transferring debt from one credit card to another • Cash advance - withdrawing cash from an ATM using a credit card • Fees may apply (even if the APR is 0%)
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 19 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Penalty APR & When it Applies Penalty APR: interest rate charged on new transactions if the penalty terms in the contract are triggered What could trigger a Penalty APR? 1. Make a late payment 2. Go over your credit limit 3. Make a payment that is returned 4. Do any of the above on another account that you have with them.
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 20 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill How To Avoid Paying Interest on Purchases Pay your bill in full by the due date Minimum Interest Charge Typically $0.50 - $2 per month
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 21 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Explore the Federal Reserve Board website www.federalreserve.gov/creditcard Identify three resources on this site that could help you in the future when it comes to managing your credit cards
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 22 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Set-up and Maintenance Fees • Annual fee: yearly fee that may be charged for having a credit card • Set-up fee: fee for opening the account • Participation fee: monthly fee for having the credit card • Additional card fee: fee to have a second person on the account Why would a consumer choose a credit card with an annual fee? Benefits, such as airline miles, the card offers are of greater value to them
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 23 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Transaction Fees • Balance transfer fees • Cash advance fees • Other
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 24 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Penalty Fees Penalty fees in addition to Penalty APR • Late-payment fee: charged when a cardholder does not make the minimum monthly payment by the due date • Over-the-limit fee: charged if the account balance goes over the set credit limit • Returned payment fee: applies if the cardholder does not have enough money to cover a payment.
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 25 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill How We Calculate Your Balance Credit card companies use one of several methods to calculate an outstanding credit card balance
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 26 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Loss of Introductory APR If the card has an introductory rate, this area will list how the lower introductory rate can be lost
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 27 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card Chaos Move to the correct side of the room indicated by the arrow Identify which term is true on your credit card offer Two credit card terms will be provided
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 28 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card Chaos Does your credit card offer have a: Fixed-rate APR for Purchases Variable-rate APR for PurchasesOR Card 1 – 14.99% Card 2 – 14.99% Card 3 – 15.99%
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 29 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card Chaos Does your credit card offer have an Introductory Rate? Introductory RateNo Introductory Rate OR Card 2 Card 1 – 12.99-14.99% for one year Card 3 – 11.99% for one year
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 30 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card Chaos Does your credit card offer have an: APR for Purchases greater than or equal to 15% APR for Purchases less than 15%OR Card 3 Card 1 Card 2
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 31 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card Chaos Does your credit card offer have a Minimum Interest Charge? Minimum Interest Charge No Minimum Interest Charge OR Card 1 - $1.50 Card 3 - $2.00 Card 2
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 32 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card Chaos Does your credit card offer have an Annual Fee? Annual Fee No Annual Fee OR Card 1 - $20 Card 3 - $15 Card 2
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 33 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card Chaos Does your credit card offer have a Balance Transfer Fee? Balance Transfer Fee No Balance Transfer Fee OR Card 3 Card 1 - $5 or 3% Card 2 - $25 or 5%
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 34 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card Chaos Does your credit card offer have a Late Payment Fee? Late Payment Fee No Late Payment Fee OR Card 1 - $29 if balance less than $1000 or $35 for balances greater than $1000 Card 2 - $30 Card 3 -$35
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 35 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 How Do I Obtain a Credit Card? Shop around Compare credit card offers and determine which card best fits your needs Complete a credit application A form requesting information about a person’s ability to repay Approval? Applicant may or may not be approved (depends on creditworthiness) If approved, review the final credit terms closelyCredit card companies send pre-approved credit card applications in the mail when the individual has passed the initial credit check
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 36 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 You must be 21 Or, have proof of sufficient income to make payments Or, have a co- signer Obtaining a Credit Card If a credit card is not managed responsibly, what impact does that have on a co-signer?
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 37 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 What is a Credit Card Statement? Andrew’s Credit Card Statement Please help Andrew interpret his credit card statement. It is important to review each monthly credit card statement closely!
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 38 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Transactions Reference Number Trans Date Post Date Description of Transaction or Credit Amount XXXX1 2/22 2/23 Store #1 $517.12 XXXX2 2/25 2/25 Payment $450.00 - XXXX3 2/26 2/26 Cash Advance $318.00 XXXX4 2/27 3/1 Balance Transfer $785.00 Fees XXXX5 2/23 2/23 Late Fee $35.00 XXXX6 2/27 2/27 Balance Transfer Fee $23.55 XXXX7 2/28 2/28 Cash Advance Fee $10.90 Total Fees for this Period $69.45 Interest Charged Interest Charge on Purchases $6.57 Interest Charge on Cash Advances $4.79 Total Interest for this Period $11.36 Payment Information New Balance $1786.00 Minimum Payment Due $53.00 Payment Due Date 4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account. Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge Purchases 14.99% $533.32 $6.57 Cash Advances 21.99% $265.00 $4.79 Balance Transfers 0.00% $575.67 $0.00 Summary of Account Activity Previous Balance 535.07 Payments -450.00 Purchases +517.12 Balance Transfers +785.00 Cash Advances +318.00 Past Due Amount +0.00 Fees Charged +69.45 Interest Charged +11.36 New Balance $1,786.00 Credit Limit $2,000.00 Available credit $214.00 Statement closing date 3/22/2012 Days in billing cycle 30 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 8 years $2,785 $62 3 years $2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, any changes to APR’s described below will apply to these transactions. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not go into affect at this time. These changes will go into effect when the Penalty APR no longer applies to your account. 2012 Totals Year-to-Date Total fees charged in 2012 $90.14 Total interest charged in 2012 $18.74 Andrew’s Credit Card Statement Summary of Account Activity Overview of credit card How much did Andrew charge in new purchases during this credit card billing cycle? $517.12 10 9 8 7 6 2 4 5 1 3 Revised Terms, as of 5/10/12 APR for purchases 16.99% Summary of Account Activity Previous Balance 535.07 Payments -450.00 Purchases +517.12 Balance Transfers +785.00 Cash Advances +318.00 Past Due Amount +0.00 Fees Charged +69.45 Interest Charged +11.36 New Balance $1,786.00 Credit Limit $2,000.00 Available credit $214.00 Statement closing date 3/22/2012 Days in billing cycle 30
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 39 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Payment Information • Total new balance • Minimum payment amount • Date payment is due What is Andrew’s minimum payment due for this billing cycle? $53.00 Transactions Reference Number Trans Date Post Date Description of Transaction or Credit Amount XXXX1 2/22 2/23 Store #1 $517.12 XXXX2 2/25 2/25 Payment $450.00 - XXXX3 2/26 2/26 Cash Advance $318.00 XXXX4 2/27 3/1 Balance Transfer $785.00 Fees XXXX5 2/23 2/23 Late Fee $35.00 XXXX6 2/27 2/27 Balance Transfer Fee $23.55 XXXX7 2/28 2/28 Cash Advance Fee $10.90 Total Fees for this Period $69.45 Interest Charged Interest Charge on Purchases $6.57 Interest Charge on Cash Advances $4.79 Total Interest for this Period $11.36 Payment Information New Balance $1786.00 Minimum Payment Due $53.00 Payment Due Date 4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account. Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge Purchases 14.99% $533.32 $6.57 Cash Advances 21.99% $265.00 $4.79 Balance Transfers 0.00% $575.67 $0.00 Summary of Account Activity Previous Balance 535.07 Payments -450.00 Purchases +517.12 Balance Transfers +785.00 Cash Advances +318.00 Past Due Amount +0.00 Fees Charged +69.45 Interest Charged +11.36 New Balance $1,786.00 Credit Limit $2,000.00 Available credit $214.00 Statement closing date 3/22/2012 Days in billing cycle 30 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 8 years $2,785 $62 3 years $2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, any changes to APR’s described below will apply to these transactions. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not go into affect at this time. These changes will go into effect when the Penalty APR no longer applies to your account. 2012 Totals Year-to-Date Total fees charged in 2012 $90.14 Total interest charged in 2012 $18.74 Andrew’s Credit Card Statement 10 9 8 7 6 2 4 5 1 3 Revised Terms, as of 5/10/12 APR for purchases 16.99% Payment Information New Balance $1,786.00 Minimum Payment Due $53.00 Payment Due Date 4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 8 years $2,785 $62 3 years $2,232 (Savings=$553)
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 40 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Late Payment Warning What will happen if a payment is late—usually additional fees and a higher interest rate How long will it take Andrew to pay off the balance of his credit card if he only pays the minimum payment? 8 years Minimum Payment Warning Estimate of how long it can take to pay off balance if only minimum payment is made Transactions Reference Number Trans Date Post Date Description of Transaction or Credit Amount XXXX1 2/22 2/23 Store #1 $517.12 XXXX2 2/25 2/25 Payment $450.00 - XXXX3 2/26 2/26 Cash Advance $318.00 XXXX4 2/27 3/1 Balance Transfer $785.00 Fees XXXX5 2/23 2/23 Late Fee $35.00 XXXX6 2/27 2/27 Balance Transfer Fee $23.55 XXXX7 2/28 2/28 Cash Advance Fee $10.90 Total Fees for this Period $69.45 Interest Charged Interest Charge on Purchases $6.57 Interest Charge on Cash Advances $4.79 Total Interest for this Period $11.36 Payment Information New Balance $1786.00 Minimum Payment Due $53.00 Payment Due Date 4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account. Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge Purchases 14.99% $533.32 $6.57 Cash Advances 21.99% $265.00 $4.79 Balance Transfers 0.00% $575.67 $0.00 Summary of Account Activity Previous Balance 535.07 Payments -450.00 Purchases +517.12 Balance Transfers +785.00 Cash Advances +318.00 Past Due Amount +0.00 Fees Charged +69.45 Interest Charged +11.36 New Balance $1,786.00 Credit Limit $2,000.00 Available credit $214.00 Statement closing date 3/22/2012 Days in billing cycle 30 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 8 years $2,785 $62 3 years $2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, any changes to APR’s described below will apply to these transactions. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not go into affect at this time. These changes will go into effect when the Penalty APR no longer applies to your account. 2012 Totals Year-to-Date Total fees charged in 2012 $90.14 Total interest charged in 2012 $18.74 Andrew’s Credit Card Statement 10 9 8 7 6 2 4 5 1 3 Revised Terms, as of 5/10/12 APR for purchases 16.99% Payment Information New Balance $1,786.00 Minimum Payment Due $53.00 Payment Due Date 4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 8 years $2,785 $62 3 years $2,232
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 41 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Notice of Changes to Your Interest Rates Notifies card holder if rates are changing (typically a result of the Penalty APR being triggered) Summary of Account Activity Previous Balance 535.07 Payments -450.00 Purchases +517.12 Balance Transfers +785.00 Cash Advances +318.00 Past Due Amount +0.00 Fees Charged +69.45 Interest Charged +11.36 New Balance $1,786.00 Credit Limit $2,000.00 Available credit $214.00 Statement closing date 3/22/2012 Days in billing cycle 30 Has Andrew triggered the Penalty APR? Yes, he will pay 28.99% on all transactions made after 4/9/12 Transactions Reference Number Trans Date Post Date Description of Transaction or Credit Amount XXXX1 2/22 2/23 Store #1 $517.12 XXXX2 2/25 2/25 Payment $450.00 - XXXX3 2/26 2/26 Cash Advance $318.00 XXXX4 2/27 3/1 Balance Transfer $785.00 Fees XXXX5 2/23 2/23 Late Fee $35.00 XXXX6 2/27 2/27 Balance Transfer Fee $23.55 XXXX7 2/28 2/28 Cash Advance Fee $10.90 Total Fees for this Period $69.45 Interest Charged Interest Charge on Purchases $6.57 Interest Charge on Cash Advances $4.79 Total Interest for this Period $11.36 Payment Information New Balance $1786.00 Minimum Payment Due $53.00 Payment Due Date 4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account. Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge Purchases 14.99% $533.32 $6.57 Cash Advances 21.99% $265.00 $4.79 Balance Transfers 0.00% $575.67 $0.00 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 8 years $2,785 $62 3 years $2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, any changes to APR’s described below will apply to these transactions. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not go into affect at this time. These changes will go into effect when the Penalty APR no longer applies to your account. 2012 Totals Year-to-Date Total fees charged in 2012 $90.14 Total interest charged in 2012 $18.74 Andrew’s Credit Card Statement 10 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. 9 8 7 6 2 4 5 1 3 Revised Terms, as of 5/10/12 APR for purchases 16.99%
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 42 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Important Changes to Your Account Terms • Must be notified of any significant changes • Any changes can only apply to new charges • Account can be closed before the changes go into effect Other than implementation of the Penalty APR, will there be any other changes to Andrew’s account terms? Yes, his APR for Purchases is increasing to 16.99% Summary of Account Activity Previous Balance 535.07 Payments -450.00 Purchases +517.12 Balance Transfers +785.00 Cash Advances +318.00 Past Due Amount +0.00 Fees Charged +69.45 Interest Charged +11.36 New Balance $1,786.00 Credit Limit $2,000.00 Available credit $214.00 Statement closing date 3/22/2012 Days in billing cycle 30 Transactions Reference Number Trans Date Post Date Description of Transaction or Credit Amount XXXX1 2/22 2/23 Store #1 $517.12 XXXX2 2/25 2/25 Payment $450.00 - XXXX3 2/26 2/26 Cash Advance $318.00 XXXX4 2/27 3/1 Balance Transfer $785.00 Fees XXXX5 2/23 2/23 Late Fee $35.00 XXXX6 2/27 2/27 Balance Transfer Fee $23.55 XXXX7 2/28 2/28 Cash Advance Fee $10.90 Total Fees for this Period $69.45 Interest Charged Interest Charge on Purchases $6.57 Interest Charge on Cash Advances $4.79 Total Interest for this Period $11.36 Payment Information New Balance $1786.00 Minimum Payment Due $53.00 Payment Due Date 4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account. Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge Purchases 14.99% $533.32 $6.57 Cash Advances 21.99% $265.00 $4.79 Balance Transfers 0.00% $575.67 $0.00 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 8 years $2,785 $62 3 years $2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, any changes to APR’s described below will apply to these transactions. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not go into affect at this time. These changes will go into effect when the Penalty APR no longer applies to your account. 2012 Totals Year-to-Date Total fees charged in 2012 $90.14 Total interest charged in 2012 $18.74 Andrew’s Credit Card Statement 10 9 8 7 6 2 4 5 1 3 Revised Terms, as of 5/10/12 APR for purchases 16.99% Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, any changes to APR’s described below will apply to these transactions. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not go into affect at this time. These changes will go into effect when the Penalty APR no longer applies to your account. Revised Terms, as of 5/10/12 APR for purchases 16.99%
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 43 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Transactions • List of all transactions since the last statement • Should be reviewed for errors Fees and Interest Charged • Fees and interest charges must be listed separately Does Andrew owe a late fee? Yes, he owes a $35.00 late fee Summary of Account Activity Previous Balance 535.07 Payments -450.00 Purchases +517.12 Balance Transfers +785.00 Cash Advances +318.00 Past Due Amount +0.00 Fees Charged +69.45 Interest Charged +11.36 New Balance $1,786.00 Credit Limit $2,000.00 Available credit $214.00 Statement closing date 3/22/2012 Days in billing cycle 30 Transactions Reference Number Trans Date Post Date Description of Transaction or Credit Amount XXXX1 2/22 2/23 Store #1 $517.12 XXXX2 2/25 2/25 Payment $450.00 - XXXX3 2/26 2/26 Cash Advance $318.00 XXXX4 2/27 3/1 Balance Transfer $785.00 Fees XXXX5 2/23 2/23 Late Fee $35.00 XXXX6 2/27 2/27 Balance Transfer Fee $23.55 XXXX7 2/28 2/28 Cash Advance Fee $10.90 Total Fees for this Period $69.45 Interest Charged Interest Charge on Purchases $6.57 Interest Charge on Cash Advances $4.79 Total Interest for this Period $11.36 Payment Information New Balance $1786.00 Minimum Payment Due $53.00 Payment Due Date 4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account. Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge Purchases 14.99% $533.32 $6.57 Cash Advances 21.99% $265.00 $4.79 Balance Transfers 0.00% $575.67 $0.00 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 8 years $2,785 $62 3 years $2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, any changes to APR’s described below will apply to these transactions. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not go into affect at this time. These changes will go into effect when the Penalty APR no longer applies to your account. 2012 Totals Year-to-Date Total fees charged in 2012 $90.14 Total interest charged in 2012 $18.74 Andrew’s Credit Card Statement 10 9 8 7 6 2 4 5 1 3 Revised Terms, as of 5/10/12 APR for purchases 16.99% Transactions Reference Number Trans Date Post Date Description of Transaction or Credit Amount XXXX1 2/22 2/23 Store #1 $535.07 XXXX2 2/25 2/26 Payment $450.00 - XXXX3 2/26 2/26 Cash Advance $318.00 XXXX4 3/15 3/17 Balance Transfer $785.00 Fees XXXX5 2/23 2/23 Late Fee $35.00 XXXX6 2/27 2/27 Balance Transfer Fee $23.55 XXXX7 2/28 2/28 Cash Advance Fee $10.90 Total Fees for this Period $69.45 Interest Charged Interest Charge on Purchases $6.59 Interest Charge on Cash Advances $4.79 Total Interest for this Period $11.36 2012 Totals Year-to-Date Total fees charged in 2012 $90.14 Total interest charged in 2012 $18.74
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 44 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Year-to-Date Totals Total amount paid in fees and interest charges for the current year What is the total amount of interest Andrew has paid in the year 2012? $18.74 Interest Charge Calculation Summary of the different types of transactions Why is it important to understand how to read a credit card statement? Summary of Account Activity Previous Balance 535.07 Payments -450.00 Purchases +517.12 Balance Transfers +785.00 Cash Advances +318.00 Past Due Amount +0.00 Fees Charged +69.45 Interest Charged +11.36 New Balance $1,786.00 Credit Limit $2,000.00 Available credit $214.00 Statement closing date 3/22/2012 Days in billing cycle 30 Transactions Reference Number Trans Date Post Date Description of Transaction or Credit Amount XXXX1 2/22 2/23 Store #1 $517.12 XXXX2 2/25 2/25 Payment $450.00 - XXXX3 2/26 2/26 Cash Advance $318.00 XXXX4 2/27 3/1 Balance Transfer $785.00 Fees XXXX5 2/23 2/23 Late Fee $35.00 XXXX6 2/27 2/27 Balance Transfer Fee $23.55 XXXX7 2/28 2/28 Cash Advance Fee $10.90 Total Fees for this Period $69.45 Interest Charged Interest Charge on Purchases $6.57 Interest Charge on Cash Advances $4.79 Total Interest for this Period $11.36 Payment Information New Balance $1786.00 Minimum Payment Due $53.00 Payment Due Date 4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account. Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge Purchases 14.99% $533.32 $6.57 Cash Advances 21.99% $265.00 $4.79 Balance Transfers 0.00% $575.67 $0.00 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 8 years $2,785 $62 3 years $2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, any changes to APR’s described below will apply to these transactions. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not go into affect at this time. These changes will go into effect when the Penalty APR no longer applies to your account. 2012 Totals Year-to-Date Total fees charged in 2012 $90.14 Total interest charged in 2012 $18.74 Andrew’s Credit Card Statement 10 9 8 7 6 2 4 5 1 3 Revised Terms, as of 5/10/12 APR for purchases 16.99% Transactions Reference Number Trans Date Post Date Description of Transaction or Credit Amount XXXX1 2/22 2/23 Store #1 $535.07 XXXX2 2/25 2/25 Payment $450.00 - XXXX3 2/26 2/26 Cash Advance $318.00 XXXX4 2/27 3/11 Balance Transfer $785.00 Fees XXXX5 2/23 2/23 Late Fee $35.00 XXXX6 2/27 2/27 Balance Transfer Fee $23.55 XXXX7 2/28 2/28 Cash Advance Fee $10.90 Total Fees for this Period $69.45 Interest Charged Interest Charge on Purchases $6.57 Interest Charge on Cash Advances $4.79 Total Interest for this Period $11.36 2012 Totals Year-to-Date Total fees charged in 2012 $90.14 Total interest charged in 2012 $18.74 Interest Charge Calculation Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge Purchases 14.99% $533.32 $6.57 Cash Advances 21.99% $265.00 $4.79 Balance Transfers 0.00% $575.67 $0.00
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 45 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Be Andrew’s Financial Advisor Andrew has come to you and voiced his concerns about having a credit card. He is considering getting rid of his credit card. As a “financial advisor,” you understand that credit cards are financial tools that can be used or abused. What three pieces of advice will you give Andrew?
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 46 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 To avoid paying interest on a credit card, pay the balance in full every month A credit card can have a positive or a negative impact on credit history Credit card companies are required to disclose the terms and fees of a credit card If you apply for credit and are approved, be sure to review the final credit terms offered Credit card statements outline important information about a credit card and should be checked carefully for errors Summary

Recommended

6.01 credit reports and_scores_ppt
6.01 credit reports and_scores_ppt6.01 credit reports and_scores_ppt
6.01 credit reports and_scores_pptJamie Norton, MEd
 
5.02 savings tools power_point
5.02 savings tools power_point5.02 savings tools power_point
5.02 savings tools power_pointJamie Norton, MEd
 
5.03 the fundamentals of investing ppt
5.03 the fundamentals of investing ppt 5.03 the fundamentals of investing ppt
5.03 the fundamentals of investing ppt Jamie Norton, MEd
 
Mortgage 101: Everything You Need from Contract to Close
Mortgage 101: Everything You Need from Contract to CloseMortgage 101: Everything You Need from Contract to Close
Mortgage 101: Everything You Need from Contract to CloseValkeryie Consulting
 
Vehicle loans......
Vehicle loans......Vehicle loans......
Vehicle loans......Hemlata Yadav
 
A Guide To Applying to Law School Powerpoint.maral cavner
A Guide To Applying to Law School Powerpoint.maral cavnerA Guide To Applying to Law School Powerpoint.maral cavner
A Guide To Applying to Law School Powerpoint.maral cavnerMaral Cavner
 
Effective Credit Policy Consumer Credit
Effective Credit Policy Consumer CreditEffective Credit Policy Consumer Credit
Effective Credit Policy Consumer CreditSriram Natarajan
 
Standalone PV plant sizing guide
Standalone PV plant sizing guideStandalone PV plant sizing guide
Standalone PV plant sizing guideHashim Hasnain Hadi
 

Recommended

6.01 credit reports and_scores_ppt
6.01 credit reports and_scores_ppt6.01 credit reports and_scores_ppt
6.01 credit reports and_scores_pptJamie Norton, MEd
 
5.02 savings tools power_point
5.02 savings tools power_point5.02 savings tools power_point
5.02 savings tools power_pointJamie Norton, MEd
 
5.03 the fundamentals of investing ppt
5.03 the fundamentals of investing ppt 5.03 the fundamentals of investing ppt
5.03 the fundamentals of investing ppt Jamie Norton, MEd
 
Mortgage 101: Everything You Need from Contract to Close
Mortgage 101: Everything You Need from Contract to CloseMortgage 101: Everything You Need from Contract to Close
Mortgage 101: Everything You Need from Contract to CloseValkeryie Consulting
 
Vehicle loans......
Vehicle loans......Vehicle loans......
Vehicle loans......Hemlata Yadav
 
A Guide To Applying to Law School Powerpoint.maral cavner
A Guide To Applying to Law School Powerpoint.maral cavnerA Guide To Applying to Law School Powerpoint.maral cavner
A Guide To Applying to Law School Powerpoint.maral cavnerMaral Cavner
 
Effective Credit Policy Consumer Credit
Effective Credit Policy Consumer CreditEffective Credit Policy Consumer Credit
Effective Credit Policy Consumer CreditSriram Natarajan
 
Standalone PV plant sizing guide
Standalone PV plant sizing guideStandalone PV plant sizing guide
Standalone PV plant sizing guideHashim Hasnain Hadi
 
Down Payment Assistance
Down Payment AssistanceDown Payment Assistance
Down Payment AssistanceDavid Radke
 
Tenant Protection Act of 2019
Tenant Protection Act of 2019Tenant Protection Act of 2019
Tenant Protection Act of 2019Madison Williamson
 
Sample plaintiffs opposition to motion for judgment on the pleadings in Calif...
Sample plaintiffs opposition to motion for judgment on the pleadings in Calif...Sample plaintiffs opposition to motion for judgment on the pleadings in Calif...
Sample plaintiffs opposition to motion for judgment on the pleadings in Calif...LegalDocsPro
 
Népesedési folyamatok hazánkban - 8. osztály (földrajz)
Népesedési folyamatok hazánkban - 8. osztály (földrajz)Népesedési folyamatok hazánkban - 8. osztály (földrajz)
Népesedési folyamatok hazánkban - 8. osztály (földrajz)Csimax
 
Loan application-1003-2005
Loan application-1003-2005Loan application-1003-2005
Loan application-1003-2005Louisville Kentucky Mortgage Lender
 
Credit score and reports
Credit score and reportsCredit score and reports
Credit score and reportskdepodesta
 
Credit card
Credit cardCredit card
Credit cardVaishnavi
 
Session9 E X A M I N A T I O N P R E P NMLS - Mortgage
Session9 E X A M I N A T I O N P R E P NMLS - MortgageSession9 E X A M I N A T I O N P R E P NMLS - Mortgage
Session9 E X A M I N A T I O N P R E P NMLS - MortgageDean Wegner of Guardian Mortgage, Arizona 602-432-6388
 
Sample California motion to vacate default judgment under ccp section 473
Sample California motion to vacate default judgment under ccp section 473Sample California motion to vacate default judgment under ccp section 473
Sample California motion to vacate default judgment under ccp section 473LegalDocsPro
 
Predicting Credit Card Defaults using Machine Learning Algorithms
Predicting Credit Card Defaults using Machine Learning AlgorithmsPredicting Credit Card Defaults using Machine Learning Algorithms
Predicting Credit Card Defaults using Machine Learning AlgorithmsSagar Tupkar
 
List of Business Opportunities in Green Power and Renewable Energy Sector.
List of Business Opportunities in Green Power and Renewable Energy Sector.List of Business Opportunities in Green Power and Renewable Energy Sector.
List of Business Opportunities in Green Power and Renewable Energy Sector.Ajjay Kumar Gupta
 
Education loan
Education loanEducation loan
Education loanArvind Shrivastav
 
6.02 credit basics power_point
6.02 credit basics power_point6.02 credit basics power_point
6.02 credit basics power_pointJamie Norton, MEd
 
Take charge of credit cards power point presentation 2.4.1.g1
Take charge of credit cards power point presentation 2.4.1.g1Take charge of credit cards power point presentation 2.4.1.g1
Take charge of credit cards power point presentation 2.4.1.g1lbonner1987
 
Creditcards
CreditcardsCreditcards
Creditcardsvcrisafulli
 
Introduction to depository_institutions_power_point_2.2.1.g1-with_josie_throu...
Introduction to depository_institutions_power_point_2.2.1.g1-with_josie_throu...Introduction to depository_institutions_power_point_2.2.1.g1-with_josie_throu...
Introduction to depository_institutions_power_point_2.2.1.g1-with_josie_throu...Jamie Norton, MEd
 
Paying for Higher Education.pptx
Paying for Higher Education.pptxPaying for Higher Education.pptx
Paying for Higher Education.pptxSiegel High School
 
Getting paid power_point_presentation_2.3.9.g1
Getting paid power_point_presentation_2.3.9.g1Getting paid power_point_presentation_2.3.9.g1
Getting paid power_point_presentation_2.3.9.g1Jamie Norton, MEd
 
Everything kids need to know about credit cards
Everything kids need to know about credit cardsEverything kids need to know about credit cards
Everything kids need to know about credit cardsAmerican Debt Counseling Inc
 
Paying for higher education
Paying for higher educationPaying for higher education
Paying for higher educationSiegel High School
 
Thriving full3e chapter13- modified
Thriving full3e chapter13- modifiedThriving full3e chapter13- modified
Thriving full3e chapter13- modifiedCaryn J Atwater
 
HUSC 3366 Chapter 5 Consumer Credit
HUSC 3366 Chapter 5 Consumer CreditHUSC 3366 Chapter 5 Consumer Credit
HUSC 3366 Chapter 5 Consumer CreditRita Conley
 

More Related Content

What's hot

Down Payment Assistance
Down Payment AssistanceDown Payment Assistance
Down Payment AssistanceDavid Radke
 
Sample plaintiffs opposition to motion for judgment on the pleadings in Calif...
Sample plaintiffs opposition to motion for judgment on the pleadings in Calif...Sample plaintiffs opposition to motion for judgment on the pleadings in Calif...
Sample plaintiffs opposition to motion for judgment on the pleadings in Calif...LegalDocsPro
 
Népesedési folyamatok hazánkban - 8. osztály (földrajz)
Népesedési folyamatok hazánkban - 8. osztály (földrajz)Népesedési folyamatok hazánkban - 8. osztály (földrajz)
Népesedési folyamatok hazánkban - 8. osztály (földrajz)Csimax
 
Credit score and reports
Credit score and reportsCredit score and reports
Credit score and reportskdepodesta
 
Sample California motion to vacate default judgment under ccp section 473
Sample California motion to vacate default judgment under ccp section 473Sample California motion to vacate default judgment under ccp section 473
Sample California motion to vacate default judgment under ccp section 473LegalDocsPro
 
Predicting Credit Card Defaults using Machine Learning Algorithms
Predicting Credit Card Defaults using Machine Learning AlgorithmsPredicting Credit Card Defaults using Machine Learning Algorithms
Predicting Credit Card Defaults using Machine Learning AlgorithmsSagar Tupkar
 
List of Business Opportunities in Green Power and Renewable Energy Sector.
List of Business Opportunities in Green Power and Renewable Energy Sector.List of Business Opportunities in Green Power and Renewable Energy Sector.
List of Business Opportunities in Green Power and Renewable Energy Sector.Ajjay Kumar Gupta
 

What's hot (12)

Down Payment Assistance
Down Payment AssistanceDown Payment Assistance
Down Payment Assistance
 
Tenant Protection Act of 2019
Tenant Protection Act of 2019Tenant Protection Act of 2019
Tenant Protection Act of 2019
 
Sample plaintiffs opposition to motion for judgment on the pleadings in Calif...
Sample plaintiffs opposition to motion for judgment on the pleadings in Calif...Sample plaintiffs opposition to motion for judgment on the pleadings in Calif...
Sample plaintiffs opposition to motion for judgment on the pleadings in Calif...
 
Népesedési folyamatok hazánkban - 8. osztály (földrajz)
Népesedési folyamatok hazánkban - 8. osztály (földrajz)Népesedési folyamatok hazánkban - 8. osztály (földrajz)
Népesedési folyamatok hazánkban - 8. osztály (földrajz)
 
Loan application-1003-2005
Loan application-1003-2005Loan application-1003-2005
Loan application-1003-2005
 
Credit score and reports
Credit score and reportsCredit score and reports
Credit score and reports
 
Credit card
Credit cardCredit card
Credit card
 
Session9 E X A M I N A T I O N P R E P NMLS - Mortgage
Session9 E X A M I N A T I O N P R E P NMLS - MortgageSession9 E X A M I N A T I O N P R E P NMLS - Mortgage
Session9 E X A M I N A T I O N P R E P NMLS - Mortgage
 
Sample California motion to vacate default judgment under ccp section 473
Sample California motion to vacate default judgment under ccp section 473Sample California motion to vacate default judgment under ccp section 473
Sample California motion to vacate default judgment under ccp section 473
 
Predicting Credit Card Defaults using Machine Learning Algorithms
Predicting Credit Card Defaults using Machine Learning AlgorithmsPredicting Credit Card Defaults using Machine Learning Algorithms
Predicting Credit Card Defaults using Machine Learning Algorithms
 
List of Business Opportunities in Green Power and Renewable Energy Sector.
List of Business Opportunities in Green Power and Renewable Energy Sector.List of Business Opportunities in Green Power and Renewable Energy Sector.
List of Business Opportunities in Green Power and Renewable Energy Sector.
 
Education loan
Education loanEducation loan
Education loan
 

Similar to Understanding credit cards_power_point_2.6.3.g1

6.02 credit basics power_point
6.02 credit basics power_point6.02 credit basics power_point
6.02 credit basics power_pointJamie Norton, MEd
 
Take charge of credit cards power point presentation 2.4.1.g1
Take charge of credit cards power point presentation 2.4.1.g1Take charge of credit cards power point presentation 2.4.1.g1
Take charge of credit cards power point presentation 2.4.1.g1lbonner1987
 
Introduction to depository_institutions_power_point_2.2.1.g1-with_josie_throu...
Introduction to depository_institutions_power_point_2.2.1.g1-with_josie_throu...Introduction to depository_institutions_power_point_2.2.1.g1-with_josie_throu...
Introduction to depository_institutions_power_point_2.2.1.g1-with_josie_throu...Jamie Norton, MEd
 
Paying for Higher Education.pptx
Paying for Higher Education.pptxPaying for Higher Education.pptx
Paying for Higher Education.pptxSiegel High School
 
Getting paid power_point_presentation_2.3.9.g1
Getting paid power_point_presentation_2.3.9.g1Getting paid power_point_presentation_2.3.9.g1
Getting paid power_point_presentation_2.3.9.g1Jamie Norton, MEd
 
Thriving full3e chapter13- modified
Thriving full3e chapter13- modifiedThriving full3e chapter13- modified
Thriving full3e chapter13- modifiedCaryn J Atwater
 
HUSC 3366 Chapter 5 Consumer Credit
HUSC 3366 Chapter 5 Consumer CreditHUSC 3366 Chapter 5 Consumer Credit
HUSC 3366 Chapter 5 Consumer CreditRita Conley
 
creditcardbasics-120802162510-phpapp02.pdf
creditcardbasics-120802162510-phpapp02.pdfcreditcardbasics-120802162510-phpapp02.pdf
creditcardbasics-120802162510-phpapp02.pdfkdaeh80
 
Financial-Management
Financial-ManagementFinancial-Management
Financial-Managementdamonridley
 
Lesson Plan 2 Credit & Credit Cards
Lesson Plan 2 Credit & Credit CardsLesson Plan 2 Credit & Credit Cards
Lesson Plan 2 Credit & Credit Cardsdjsees
 
How student loans are affecting your credit
How student loans are affecting your creditHow student loans are affecting your credit
How student loans are affecting your creditPerformance SLC
 
Improving Your Credit
Improving Your CreditImproving Your Credit
Improving Your Credittgwade
 
Understanding credit
Understanding creditUnderstanding credit
Understanding creditNick Wolff
 
How student loans are affecting your credit
How student loans are affecting your creditHow student loans are affecting your credit
How student loans are affecting your creditPerformance SLC
 
6.06 smart consumer spending
6.06 smart consumer spending6.06 smart consumer spending
6.06 smart consumer spendingJamie Norton, MEd
 

Similar to Understanding credit cards_power_point_2.6.3.g1 (20)

6.02 credit basics power_point
6.02 credit basics power_point6.02 credit basics power_point
6.02 credit basics power_point
 
Take charge of credit cards power point presentation 2.4.1.g1
Take charge of credit cards power point presentation 2.4.1.g1Take charge of credit cards power point presentation 2.4.1.g1
Take charge of credit cards power point presentation 2.4.1.g1
 
Creditcards
CreditcardsCreditcards
Creditcards
 
Introduction to depository_institutions_power_point_2.2.1.g1-with_josie_throu...
Introduction to depository_institutions_power_point_2.2.1.g1-with_josie_throu...Introduction to depository_institutions_power_point_2.2.1.g1-with_josie_throu...
Introduction to depository_institutions_power_point_2.2.1.g1-with_josie_throu...
 
Paying for Higher Education.pptx
Paying for Higher Education.pptxPaying for Higher Education.pptx
Paying for Higher Education.pptx
 
Getting paid power_point_presentation_2.3.9.g1
Getting paid power_point_presentation_2.3.9.g1Getting paid power_point_presentation_2.3.9.g1
Getting paid power_point_presentation_2.3.9.g1
 
Everything kids need to know about credit cards
Everything kids need to know about credit cardsEverything kids need to know about credit cards
Everything kids need to know about credit cards
 
Paying for higher education
Paying for higher educationPaying for higher education
Paying for higher education
 
Thriving full3e chapter13- modified
Thriving full3e chapter13- modifiedThriving full3e chapter13- modified
Thriving full3e chapter13- modified
 
HUSC 3366 Chapter 5 Consumer Credit
HUSC 3366 Chapter 5 Consumer CreditHUSC 3366 Chapter 5 Consumer Credit
HUSC 3366 Chapter 5 Consumer Credit
 
6.07 major expenditures ppt
6.07 major expenditures ppt6.07 major expenditures ppt
6.07 major expenditures ppt
 
creditcardbasics-120802162510-phpapp02.pdf
creditcardbasics-120802162510-phpapp02.pdfcreditcardbasics-120802162510-phpapp02.pdf
creditcardbasics-120802162510-phpapp02.pdf
 
Financial Management Insight
Financial Management InsightFinancial Management Insight
Financial Management Insight
 
Financial-Management
Financial-ManagementFinancial-Management
Financial-Management
 
Lesson Plan 2 Credit & Credit Cards
Lesson Plan 2 Credit & Credit CardsLesson Plan 2 Credit & Credit Cards
Lesson Plan 2 Credit & Credit Cards
 
How student loans are affecting your credit
How student loans are affecting your creditHow student loans are affecting your credit
How student loans are affecting your credit
 
Improving Your Credit
Improving Your CreditImproving Your Credit
Improving Your Credit
 
Understanding credit
Understanding creditUnderstanding credit
Understanding credit
 
How student loans are affecting your credit
How student loans are affecting your creditHow student loans are affecting your credit
How student loans are affecting your credit
 
6.06 smart consumer spending
6.06 smart consumer spending6.06 smart consumer spending
6.06 smart consumer spending
 

More from Jamie Norton, MEd

3.03 preparing for higher_education_power_point_2.3.3.g1
3.03 preparing for higher_education_power_point_2.3.3.g13.03 preparing for higher_education_power_point_2.3.3.g1
3.03 preparing for higher_education_power_point_2.3.3.g1Jamie Norton, MEd
 
1.01 Money in your_life_power_point_2.1.2.g1
1.01 Money in your_life_power_point_2.1.2.g11.01 Money in your_life_power_point_2.1.2.g1
1.01 Money in your_life_power_point_2.1.2.g1Jamie Norton, MEd
 
6.05 Types of Insurance_power_point
6.05 Types of Insurance_power_point6.05 Types of Insurance_power_point
6.05 Types of Insurance_power_pointJamie Norton, MEd
 
6.04 protecting yourself from fraud
6.04 protecting yourself from fraud6.04 protecting yourself from fraud
6.04 protecting yourself from fraudJamie Norton, MEd
 
5.01 choose to save_power_point
5.01 choose to save_power_point5.01 choose to save_power_point
5.01 choose to save_power_pointJamie Norton, MEd
 
Choose to save_power_point_2.4.1.g1
Choose to save_power_point_2.4.1.g1Choose to save_power_point_2.4.1.g1
Choose to save_power_point_2.4.1.g1Jamie Norton, MEd
 
4.02 receiving from government_programs_power_point
4.02 receiving from government_programs_power_point4.02 receiving from government_programs_power_point
4.02 receiving from government_programs_power_pointJamie Norton, MEd
 
4.01 receiving from family_friends_and_non-profits_power_point
4.01 receiving from family_friends_and_non-profits_power_point4.01 receiving from family_friends_and_non-profits_power_point
4.01 receiving from family_friends_and_non-profits_power_pointJamie Norton, MEd
 
Lifelong employment power_point_2.3.7.g1
Lifelong employment power_point_2.3.7.g1Lifelong employment power_point_2.3.7.g1
Lifelong employment power_point_2.3.7.g1Jamie Norton, MEd
 
Paying for higher_education_ppt_2.3.5.g1
Paying for higher_education_ppt_2.3.5.g1Paying for higher_education_ppt_2.3.5.g1
Paying for higher_education_ppt_2.3.5.g1Jamie Norton, MEd
 
Planning for higher_education_2.3.4.g1
Planning for higher_education_2.3.4.g1Planning for higher_education_2.3.4.g1
Planning for higher_education_2.3.4.g1Jamie Norton, MEd
 
3.01 Invest in yourself_power_point_2.3.1.g1
3.01 Invest in yourself_power_point_2.3.1.g13.01 Invest in yourself_power_point_2.3.1.g1
3.01 Invest in yourself_power_point_2.3.1.g1Jamie Norton, MEd
 
2.05 spending plans power_point_presentation_2.2.5.g1
2.05 spending plans power_point_presentation_2.2.5.g12.05 spending plans power_point_presentation_2.2.5.g1
2.05 spending plans power_point_presentation_2.2.5.g1Jamie Norton, MEd
 
2.04 income and expense_statement_power_point_2.2.4.g1
2.04 income and expense_statement_power_point_2.2.4.g12.04 income and expense_statement_power_point_2.2.4.g1
2.04 income and expense_statement_power_point_2.2.4.g1Jamie Norton, MEd
 
2.03 statement of financial_position_power_point_2.2.3.g1
2.03 statement of financial_position_power_point_2.2.3.g12.03 statement of financial_position_power_point_2.2.3.g1
2.03 statement of financial_position_power_point_2.2.3.g1Jamie Norton, MEd
 
The basics of_taxes_power_point_2.2.2.g1
The basics of_taxes_power_point_2.2.2.g1The basics of_taxes_power_point_2.2.2.g1
The basics of_taxes_power_point_2.2.2.g1Jamie Norton, MEd
 
1.03 Setting Financial Goals
1.03 Setting Financial Goals1.03 Setting Financial Goals
1.03 Setting Financial GoalsJamie Norton, MEd
 
1.02 Financial Decisions Notes
1.02 Financial Decisions Notes1.02 Financial Decisions Notes
1.02 Financial Decisions NotesJamie Norton, MEd
 

More from Jamie Norton, MEd (20)

3.03 preparing for higher_education_power_point_2.3.3.g1
3.03 preparing for higher_education_power_point_2.3.3.g13.03 preparing for higher_education_power_point_2.3.3.g1
3.03 preparing for higher_education_power_point_2.3.3.g1
 
1.01 Money in your_life_power_point_2.1.2.g1
1.01 Money in your_life_power_point_2.1.2.g11.01 Money in your_life_power_point_2.1.2.g1
1.01 Money in your_life_power_point_2.1.2.g1
 
7.02 Estate Planning ppt
7.02 Estate Planning ppt7.02 Estate Planning ppt
7.02 Estate Planning ppt
 
7.01 giving to others_ppt
7.01 giving to others_ppt7.01 giving to others_ppt
7.01 giving to others_ppt
 
6.05 Types of Insurance_power_point
6.05 Types of Insurance_power_point6.05 Types of Insurance_power_point
6.05 Types of Insurance_power_point
 
6.04 protecting yourself from fraud
6.04 protecting yourself from fraud6.04 protecting yourself from fraud
6.04 protecting yourself from fraud
 
5.01 choose to save_power_point
5.01 choose to save_power_point5.01 choose to save_power_point
5.01 choose to save_power_point
 
Choose to save_power_point_2.4.1.g1
Choose to save_power_point_2.4.1.g1Choose to save_power_point_2.4.1.g1
Choose to save_power_point_2.4.1.g1
 
4.02 receiving from government_programs_power_point
4.02 receiving from government_programs_power_point4.02 receiving from government_programs_power_point
4.02 receiving from government_programs_power_point
 
4.01 receiving from family_friends_and_non-profits_power_point
4.01 receiving from family_friends_and_non-profits_power_point4.01 receiving from family_friends_and_non-profits_power_point
4.01 receiving from family_friends_and_non-profits_power_point
 
Lifelong employment power_point_2.3.7.g1
Lifelong employment power_point_2.3.7.g1Lifelong employment power_point_2.3.7.g1
Lifelong employment power_point_2.3.7.g1
 
Paying for higher_education_ppt_2.3.5.g1
Paying for higher_education_ppt_2.3.5.g1Paying for higher_education_ppt_2.3.5.g1
Paying for higher_education_ppt_2.3.5.g1
 
Planning for higher_education_2.3.4.g1
Planning for higher_education_2.3.4.g1Planning for higher_education_2.3.4.g1
Planning for higher_education_2.3.4.g1
 
3.01 Invest in yourself_power_point_2.3.1.g1
3.01 Invest in yourself_power_point_2.3.1.g13.01 Invest in yourself_power_point_2.3.1.g1
3.01 Invest in yourself_power_point_2.3.1.g1
 
2.05 spending plans power_point_presentation_2.2.5.g1
2.05 spending plans power_point_presentation_2.2.5.g12.05 spending plans power_point_presentation_2.2.5.g1
2.05 spending plans power_point_presentation_2.2.5.g1
 
2.04 income and expense_statement_power_point_2.2.4.g1
2.04 income and expense_statement_power_point_2.2.4.g12.04 income and expense_statement_power_point_2.2.4.g1
2.04 income and expense_statement_power_point_2.2.4.g1
 
2.03 statement of financial_position_power_point_2.2.3.g1
2.03 statement of financial_position_power_point_2.2.3.g12.03 statement of financial_position_power_point_2.2.3.g1
2.03 statement of financial_position_power_point_2.2.3.g1
 
The basics of_taxes_power_point_2.2.2.g1
The basics of_taxes_power_point_2.2.2.g1The basics of_taxes_power_point_2.2.2.g1
The basics of_taxes_power_point_2.2.2.g1
 
1.03 Setting Financial Goals
1.03 Setting Financial Goals1.03 Setting Financial Goals
1.03 Setting Financial Goals
 
1.02 Financial Decisions Notes
1.02 Financial Decisions Notes1.02 Financial Decisions Notes
1.02 Financial Decisions Notes
 

Recently uploaded

Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...EduSkills OECD
 
KSHARA STURA .pptx---KSHARA KARMA THERAPY (CAUSTIC THERAPY)————IMP.OF KSHARA ...
KSHARA STURA .pptx---KSHARA KARMA THERAPY (CAUSTIC THERAPY)————IMP.OF KSHARA ...KSHARA STURA .pptx---KSHARA KARMA THERAPY (CAUSTIC THERAPY)————IMP.OF KSHARA ...
KSHARA STURA .pptx---KSHARA KARMA THERAPY (CAUSTIC THERAPY)————IMP.OF KSHARA ...M56BOOKSTORE PRODUCT/SERVICE
 
How to Configure Email Server in Odoo 17
How to Configure Email Server in Odoo 17How to Configure Email Server in Odoo 17
How to Configure Email Server in Odoo 17Celine George
 
Contemporary philippine arts from the regions_PPT_Module_12 [Autosaved] (1).pptx
Contemporary philippine arts from the regions_PPT_Module_12 [Autosaved] (1).pptxContemporary philippine arts from the regions_PPT_Module_12 [Autosaved] (1).pptx
Contemporary philippine arts from the regions_PPT_Module_12 [Autosaved] (1).pptxRoyAbrique
 
The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13Steve Thomason
 
MENTAL STATUS EXAMINATION format.docx
MENTAL STATUS EXAMINATION format.docxMENTAL STATUS EXAMINATION format.docx
MENTAL STATUS EXAMINATION format.docxPoojaSen20
 
Class 11 Legal Studies Ch-1 Concept of State .pdf
Class 11 Legal Studies Ch-1 Concept of State .pdfClass 11 Legal Studies Ch-1 Concept of State .pdf
Class 11 Legal Studies Ch-1 Concept of State .pdfakmcokerachita
 
Enzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdf
Enzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdfEnzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdf
Enzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdfSumit Tiwari
 
Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)eniolaolutunde
 
CARE OF CHILD IN INCUBATOR..........pptx
CARE OF CHILD IN INCUBATOR..........pptxCARE OF CHILD IN INCUBATOR..........pptx
CARE OF CHILD IN INCUBATOR..........pptxGaneshChakor2
 
mini mental status format.docx
mini mental status format.docxmini mental status format.docx
mini mental status format.docxPoojaSen20
 
A Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy ReformA Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy ReformChameera Dedduwage
 
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptxSOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptxiammrhaywood
 
_Math 4-Q4 Week 5.pptx Steps in Collecting Data
_Math 4-Q4 Week 5.pptx Steps in Collecting Data_Math 4-Q4 Week 5.pptx Steps in Collecting Data
_Math 4-Q4 Week 5.pptx Steps in Collecting DataJhengPantaleon
 
ECONOMIC CONTEXT - LONG FORM TV DRAMA - PPT
ECONOMIC CONTEXT - LONG FORM TV DRAMA - PPTECONOMIC CONTEXT - LONG FORM TV DRAMA - PPT
ECONOMIC CONTEXT - LONG FORM TV DRAMA - PPTiammrhaywood
 
Solving Puzzles Benefits Everyone (English).pptx
Solving Puzzles Benefits Everyone (English).pptxSolving Puzzles Benefits Everyone (English).pptx
Solving Puzzles Benefits Everyone (English).pptxOH TEIK BIN
 
Alper Gobel In Media Res Media Component
Alper Gobel In Media Res Media ComponentAlper Gobel In Media Res Media Component
Alper Gobel In Media Res Media ComponentInMediaRes1
 

Recently uploaded (20)

Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
 
KSHARA STURA .pptx---KSHARA KARMA THERAPY (CAUSTIC THERAPY)————IMP.OF KSHARA ...
KSHARA STURA .pptx---KSHARA KARMA THERAPY (CAUSTIC THERAPY)————IMP.OF KSHARA ...KSHARA STURA .pptx---KSHARA KARMA THERAPY (CAUSTIC THERAPY)————IMP.OF KSHARA ...
KSHARA STURA .pptx---KSHARA KARMA THERAPY (CAUSTIC THERAPY)————IMP.OF KSHARA ...
 
How to Configure Email Server in Odoo 17
How to Configure Email Server in Odoo 17How to Configure Email Server in Odoo 17
How to Configure Email Server in Odoo 17
 
Contemporary philippine arts from the regions_PPT_Module_12 [Autosaved] (1).pptx
Contemporary philippine arts from the regions_PPT_Module_12 [Autosaved] (1).pptxContemporary philippine arts from the regions_PPT_Module_12 [Autosaved] (1).pptx
Contemporary philippine arts from the regions_PPT_Module_12 [Autosaved] (1).pptx
 
The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13
 
MENTAL STATUS EXAMINATION format.docx
MENTAL STATUS EXAMINATION format.docxMENTAL STATUS EXAMINATION format.docx
MENTAL STATUS EXAMINATION format.docx
 
Class 11 Legal Studies Ch-1 Concept of State .pdf
Class 11 Legal Studies Ch-1 Concept of State .pdfClass 11 Legal Studies Ch-1 Concept of State .pdf
Class 11 Legal Studies Ch-1 Concept of State .pdf
 
Enzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdf
Enzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdfEnzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdf
Enzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdf
 
Model Call Girl in Bikash Puri Delhi reach out to us at 🔝9953056974🔝
Model Call Girl in Bikash Puri Delhi reach out to us at 🔝9953056974🔝Model Call Girl in Bikash Puri Delhi reach out to us at 🔝9953056974🔝
Model Call Girl in Bikash Puri Delhi reach out to us at 🔝9953056974🔝
 
Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)
 
CARE OF CHILD IN INCUBATOR..........pptx
CARE OF CHILD IN INCUBATOR..........pptxCARE OF CHILD IN INCUBATOR..........pptx
CARE OF CHILD IN INCUBATOR..........pptx
 
mini mental status format.docx
mini mental status format.docxmini mental status format.docx
mini mental status format.docx
 
9953330565 Low Rate Call Girls In Rohini Delhi NCR
9953330565 Low Rate Call Girls In Rohini Delhi NCR9953330565 Low Rate Call Girls In Rohini Delhi NCR
9953330565 Low Rate Call Girls In Rohini Delhi NCR
 
A Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy ReformA Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy Reform
 
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptxSOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
 
_Math 4-Q4 Week 5.pptx Steps in Collecting Data
_Math 4-Q4 Week 5.pptx Steps in Collecting Data_Math 4-Q4 Week 5.pptx Steps in Collecting Data
_Math 4-Q4 Week 5.pptx Steps in Collecting Data
 
ECONOMIC CONTEXT - LONG FORM TV DRAMA - PPT
ECONOMIC CONTEXT - LONG FORM TV DRAMA - PPTECONOMIC CONTEXT - LONG FORM TV DRAMA - PPT
ECONOMIC CONTEXT - LONG FORM TV DRAMA - PPT
 
Solving Puzzles Benefits Everyone (English).pptx
Solving Puzzles Benefits Everyone (English).pptxSolving Puzzles Benefits Everyone (English).pptx
Solving Puzzles Benefits Everyone (English).pptx
 
Alper Gobel In Media Res Media Component
Alper Gobel In Media Res Media ComponentAlper Gobel In Media Res Media Component
Alper Gobel In Media Res Media Component
 
Staff of Color (SOC) Retention Efforts DDSD
Staff of Color (SOC) Retention Efforts DDSDStaff of Color (SOC) Retention Efforts DDSD
Staff of Color (SOC) Retention Efforts DDSD
 

Understanding credit cards_power_point_2.6.3.g1

  • 1. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Understanding Credit Cards Advanced Level
  • 2. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 2 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 What is a Credit Card? Is a credit card open-end or closed-end credit? Credit card - a plastic card that you can use to access a line of credit that has been established in advance A person can borrow up to an established credit limit. Credit limit – maximum dollar amount that can be borrowed.
  • 3. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card Interest The cost of credit expressed as a yearly interest rate Rate at which interest is charged is referred to as: Annual Percentage Rate (APR) Interest is charged each month the balance is not paid in full
  • 4. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Minimum Payment Payment Made Time to pay off card Total amount of interest paid Total amount paid Full Payment $1,500 1 month $0 $1,500 Partial Payment $135 1 year $125 $1,625 Minimum Payment $30 11 years $1,413 $2,913 To prepare for her first semester of college, Miranda purchased a new computer for $1,000 and textbooks for $500, spending a total of $1,500 on her credit card charging 15% APR. How much would Miranda pay in interest if she makes the minimum payment? A minimum payment is due each month the card has a balance
  • 5. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card = Helpful Financial Management Tool …if managed responsibly Develop positive credit history Convenient payment tool Protected from unauthorized charges Credit card safer for online shopping Credit card bonuses
  • 6. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Pay credit card balances in full every month Pay credit card bills on time Be conscious of how credit cards affect your credit history Check the monthly credit card statement for errors Develop a Positive Credit History Credit card use can have a positive or negative impact on your credit history Follow these positive behaviors:
  • 7. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 No need to carry large amounts of cash Useful in emergencies Often required to hold a reservation Convenient Payment Tool How is a credit card a convenient payment tool? Be conscientious of all credit card purchases to not overspend!
  • 8. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Maximum Liability $50 Unauthorized use $0 If a lost credit card is reported before it is fraudulently used If the credit card number is used fraudulently, but the credit card itself is not used Protect Yourself from Unauthorized Charges Report lost or stolen cards immediately! Check your statements monthly!
  • 9. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Safer Online Shopping More protection against fraud Less liability for unauthorized credit card charges Credit cards are safer than debit cards Money is not connected to depository institution account What is the difference between a credit card and a debit card?
  • 10. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Should you choose “debit” or “credit” at a point of sale (POS)? Point of Sale If you pick “credit” A receipt must be signed (optional if purchase is under $25) Potential benefit: Extra liability protection from fraudulent charges If you pick “debit” Must enter the card’s personal identification number (PIN) Potential benefit: Option to withdraw cash from your depository institution account for no fee
  • 11. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Rewards, Rewards, Rewards… Cash rebates Airline miles Warranties for items purchased Travel insurance Additional Benefits Would you be willing to pay higher/additional fees or higher interest rates to obtain credit card benefits? Explain. May charge additional fees or higher interest rates Carefully evaluate if the benefits outweigh the cost
  • 12. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 12 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Cards Advantages & Disadvantages How many advantages can you think of? How many disadvantages can you think of?
  • 13. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 13 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Cards Advantages & Disadvantages • Convenient payment tool • Useful for emergencies • Often required to hold a reservation • Able to purchase “big ticket” items and spread out payments • Protection against fraud • Opportunity to establish a positive credit history • Online shopping is safer than using a debit card • Possibility of receiving bonuses • Interest can be costly when a balance is revolved • Additional penalty fees may apply • Tempting to overspend • If not used responsibly, it will have a negative impact on your credit score
  • 14. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 14 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card Offers Credit card issuers are required to disclose the terms and fees of credit cards in an easy to read box format Called the Schumer Box
  • 15. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 15 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Annual Percentage Rate (APR) for Purchases • Interest rate paid for purchases • Multiple interest rates may be listed o final interest rate may depend on creditworthiness of applicant Credit cards may charge many different types of interest rates
  • 16. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 16 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill How does credit worthiness impact APR? It will influence if a person receives a credit card and the APR. APR will by higher if a person has a poor credit history. Introductory Rate • Introductory rate: APR that may be charged (usually increased) after the introductory period ends • Not all credit cards have an introductory rate
  • 17. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 17 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Would you prefer a fixed or variable rate credit card? Why? Fixed vs. Variable-rate APR • Fixed-rate APR: cannot change during the period of time outlined in a credit card agreement • Variable-rate APR: may change depending on other factors (such as economic conditions)
  • 18. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 18 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill APR for Balance Transfers & Cash Advances • Balance transfer: act of transferring debt from one credit card to another • Cash advance - withdrawing cash from an ATM using a credit card • Fees may apply (even if the APR is 0%)
  • 19. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 19 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Penalty APR & When it Applies Penalty APR: interest rate charged on new transactions if the penalty terms in the contract are triggered What could trigger a Penalty APR? 1. Make a late payment 2. Go over your credit limit 3. Make a payment that is returned 4. Do any of the above on another account that you have with them.
  • 20. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 20 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill How To Avoid Paying Interest on Purchases Pay your bill in full by the due date Minimum Interest Charge Typically $0.50 - $2 per month
  • 21. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 21 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Explore the Federal Reserve Board website www.federalreserve.gov/creditcard Identify three resources on this site that could help you in the future when it comes to managing your credit cards
  • 22. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 22 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Set-up and Maintenance Fees • Annual fee: yearly fee that may be charged for having a credit card • Set-up fee: fee for opening the account • Participation fee: monthly fee for having the credit card • Additional card fee: fee to have a second person on the account Why would a consumer choose a credit card with an annual fee? Benefits, such as airline miles, the card offers are of greater value to them
  • 23. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 23 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Transaction Fees • Balance transfer fees • Cash advance fees • Other
  • 24. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 24 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Penalty Fees Penalty fees in addition to Penalty APR • Late-payment fee: charged when a cardholder does not make the minimum monthly payment by the due date • Over-the-limit fee: charged if the account balance goes over the set credit limit • Returned payment fee: applies if the cardholder does not have enough money to cover a payment.
  • 25. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 25 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill How We Calculate Your Balance Credit card companies use one of several methods to calculate an outstanding credit card balance
  • 26. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 26 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: 1. Make a late payment; 2. Go over your credit limit; 3. Make a payment that is returned; or 4. Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.  Annual Fee: $20  Account Set-up Fee: $20 (one-time fee)  Participation Fee: $12 annually ($1 per month)  Additional Card Fee: $5 annually (if applicable) Transaction Fees  Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)  Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater  Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees  Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000  Over-the-limit: $29  Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Loss of Introductory APR If the card has an introductory rate, this area will list how the lower introductory rate can be lost
  • 27. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 27 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card Chaos Move to the correct side of the room indicated by the arrow Identify which term is true on your credit card offer Two credit card terms will be provided
  • 28. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 28 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card Chaos Does your credit card offer have a: Fixed-rate APR for Purchases Variable-rate APR for PurchasesOR Card 1 – 14.99% Card 2 – 14.99% Card 3 – 15.99%
  • 29. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 29 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card Chaos Does your credit card offer have an Introductory Rate? Introductory RateNo Introductory Rate OR Card 2 Card 1 – 12.99-14.99% for one year Card 3 – 11.99% for one year
  • 30. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 30 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card Chaos Does your credit card offer have an: APR for Purchases greater than or equal to 15% APR for Purchases less than 15%OR Card 3 Card 1 Card 2
  • 31. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 31 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card Chaos Does your credit card offer have a Minimum Interest Charge? Minimum Interest Charge No Minimum Interest Charge OR Card 1 - $1.50 Card 3 - $2.00 Card 2
  • 32. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 32 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card Chaos Does your credit card offer have an Annual Fee? Annual Fee No Annual Fee OR Card 1 - $20 Card 3 - $15 Card 2
  • 33. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 33 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card Chaos Does your credit card offer have a Balance Transfer Fee? Balance Transfer Fee No Balance Transfer Fee OR Card 3 Card 1 - $5 or 3% Card 2 - $25 or 5%
  • 34. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 34 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Credit Card Chaos Does your credit card offer have a Late Payment Fee? Late Payment Fee No Late Payment Fee OR Card 1 - $29 if balance less than $1000 or $35 for balances greater than $1000 Card 2 - $30 Card 3 -$35
  • 35. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 35 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 How Do I Obtain a Credit Card? Shop around Compare credit card offers and determine which card best fits your needs Complete a credit application A form requesting information about a person’s ability to repay Approval? Applicant may or may not be approved (depends on creditworthiness) If approved, review the final credit terms closelyCredit card companies send pre-approved credit card applications in the mail when the individual has passed the initial credit check
  • 36. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 36 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 You must be 21 Or, have proof of sufficient income to make payments Or, have a co- signer Obtaining a Credit Card If a credit card is not managed responsibly, what impact does that have on a co-signer?
  • 37. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 37 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 What is a Credit Card Statement? Andrew’s Credit Card Statement Please help Andrew interpret his credit card statement. It is important to review each monthly credit card statement closely!
  • 38. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 38 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Transactions Reference Number Trans Date Post Date Description of Transaction or Credit Amount XXXX1 2/22 2/23 Store #1 $517.12 XXXX2 2/25 2/25 Payment $450.00 - XXXX3 2/26 2/26 Cash Advance $318.00 XXXX4 2/27 3/1 Balance Transfer $785.00 Fees XXXX5 2/23 2/23 Late Fee $35.00 XXXX6 2/27 2/27 Balance Transfer Fee $23.55 XXXX7 2/28 2/28 Cash Advance Fee $10.90 Total Fees for this Period $69.45 Interest Charged Interest Charge on Purchases $6.57 Interest Charge on Cash Advances $4.79 Total Interest for this Period $11.36 Payment Information New Balance $1786.00 Minimum Payment Due $53.00 Payment Due Date 4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account. Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge Purchases 14.99% $533.32 $6.57 Cash Advances 21.99% $265.00 $4.79 Balance Transfers 0.00% $575.67 $0.00 Summary of Account Activity Previous Balance 535.07 Payments -450.00 Purchases +517.12 Balance Transfers +785.00 Cash Advances +318.00 Past Due Amount +0.00 Fees Charged +69.45 Interest Charged +11.36 New Balance $1,786.00 Credit Limit $2,000.00 Available credit $214.00 Statement closing date 3/22/2012 Days in billing cycle 30 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 8 years $2,785 $62 3 years $2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, any changes to APR’s described below will apply to these transactions. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not go into affect at this time. These changes will go into effect when the Penalty APR no longer applies to your account. 2012 Totals Year-to-Date Total fees charged in 2012 $90.14 Total interest charged in 2012 $18.74 Andrew’s Credit Card Statement Summary of Account Activity Overview of credit card How much did Andrew charge in new purchases during this credit card billing cycle? $517.12 10 9 8 7 6 2 4 5 1 3 Revised Terms, as of 5/10/12 APR for purchases 16.99% Summary of Account Activity Previous Balance 535.07 Payments -450.00 Purchases +517.12 Balance Transfers +785.00 Cash Advances +318.00 Past Due Amount +0.00 Fees Charged +69.45 Interest Charged +11.36 New Balance $1,786.00 Credit Limit $2,000.00 Available credit $214.00 Statement closing date 3/22/2012 Days in billing cycle 30
  • 39. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 39 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Payment Information • Total new balance • Minimum payment amount • Date payment is due What is Andrew’s minimum payment due for this billing cycle? $53.00 Transactions Reference Number Trans Date Post Date Description of Transaction or Credit Amount XXXX1 2/22 2/23 Store #1 $517.12 XXXX2 2/25 2/25 Payment $450.00 - XXXX3 2/26 2/26 Cash Advance $318.00 XXXX4 2/27 3/1 Balance Transfer $785.00 Fees XXXX5 2/23 2/23 Late Fee $35.00 XXXX6 2/27 2/27 Balance Transfer Fee $23.55 XXXX7 2/28 2/28 Cash Advance Fee $10.90 Total Fees for this Period $69.45 Interest Charged Interest Charge on Purchases $6.57 Interest Charge on Cash Advances $4.79 Total Interest for this Period $11.36 Payment Information New Balance $1786.00 Minimum Payment Due $53.00 Payment Due Date 4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account. Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge Purchases 14.99% $533.32 $6.57 Cash Advances 21.99% $265.00 $4.79 Balance Transfers 0.00% $575.67 $0.00 Summary of Account Activity Previous Balance 535.07 Payments -450.00 Purchases +517.12 Balance Transfers +785.00 Cash Advances +318.00 Past Due Amount +0.00 Fees Charged +69.45 Interest Charged +11.36 New Balance $1,786.00 Credit Limit $2,000.00 Available credit $214.00 Statement closing date 3/22/2012 Days in billing cycle 30 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 8 years $2,785 $62 3 years $2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, any changes to APR’s described below will apply to these transactions. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not go into affect at this time. These changes will go into effect when the Penalty APR no longer applies to your account. 2012 Totals Year-to-Date Total fees charged in 2012 $90.14 Total interest charged in 2012 $18.74 Andrew’s Credit Card Statement 10 9 8 7 6 2 4 5 1 3 Revised Terms, as of 5/10/12 APR for purchases 16.99% Payment Information New Balance $1,786.00 Minimum Payment Due $53.00 Payment Due Date 4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 8 years $2,785 $62 3 years $2,232 (Savings=$553)
  • 40. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 40 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Late Payment Warning What will happen if a payment is late—usually additional fees and a higher interest rate How long will it take Andrew to pay off the balance of his credit card if he only pays the minimum payment? 8 years Minimum Payment Warning Estimate of how long it can take to pay off balance if only minimum payment is made Transactions Reference Number Trans Date Post Date Description of Transaction or Credit Amount XXXX1 2/22 2/23 Store #1 $517.12 XXXX2 2/25 2/25 Payment $450.00 - XXXX3 2/26 2/26 Cash Advance $318.00 XXXX4 2/27 3/1 Balance Transfer $785.00 Fees XXXX5 2/23 2/23 Late Fee $35.00 XXXX6 2/27 2/27 Balance Transfer Fee $23.55 XXXX7 2/28 2/28 Cash Advance Fee $10.90 Total Fees for this Period $69.45 Interest Charged Interest Charge on Purchases $6.57 Interest Charge on Cash Advances $4.79 Total Interest for this Period $11.36 Payment Information New Balance $1786.00 Minimum Payment Due $53.00 Payment Due Date 4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account. Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge Purchases 14.99% $533.32 $6.57 Cash Advances 21.99% $265.00 $4.79 Balance Transfers 0.00% $575.67 $0.00 Summary of Account Activity Previous Balance 535.07 Payments -450.00 Purchases +517.12 Balance Transfers +785.00 Cash Advances +318.00 Past Due Amount +0.00 Fees Charged +69.45 Interest Charged +11.36 New Balance $1,786.00 Credit Limit $2,000.00 Available credit $214.00 Statement closing date 3/22/2012 Days in billing cycle 30 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 8 years $2,785 $62 3 years $2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, any changes to APR’s described below will apply to these transactions. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not go into affect at this time. These changes will go into effect when the Penalty APR no longer applies to your account. 2012 Totals Year-to-Date Total fees charged in 2012 $90.14 Total interest charged in 2012 $18.74 Andrew’s Credit Card Statement 10 9 8 7 6 2 4 5 1 3 Revised Terms, as of 5/10/12 APR for purchases 16.99% Payment Information New Balance $1,786.00 Minimum Payment Due $53.00 Payment Due Date 4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 8 years $2,785 $62 3 years $2,232
  • 41. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 41 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Notice of Changes to Your Interest Rates Notifies card holder if rates are changing (typically a result of the Penalty APR being triggered) Summary of Account Activity Previous Balance 535.07 Payments -450.00 Purchases +517.12 Balance Transfers +785.00 Cash Advances +318.00 Past Due Amount +0.00 Fees Charged +69.45 Interest Charged +11.36 New Balance $1,786.00 Credit Limit $2,000.00 Available credit $214.00 Statement closing date 3/22/2012 Days in billing cycle 30 Has Andrew triggered the Penalty APR? Yes, he will pay 28.99% on all transactions made after 4/9/12 Transactions Reference Number Trans Date Post Date Description of Transaction or Credit Amount XXXX1 2/22 2/23 Store #1 $517.12 XXXX2 2/25 2/25 Payment $450.00 - XXXX3 2/26 2/26 Cash Advance $318.00 XXXX4 2/27 3/1 Balance Transfer $785.00 Fees XXXX5 2/23 2/23 Late Fee $35.00 XXXX6 2/27 2/27 Balance Transfer Fee $23.55 XXXX7 2/28 2/28 Cash Advance Fee $10.90 Total Fees for this Period $69.45 Interest Charged Interest Charge on Purchases $6.57 Interest Charge on Cash Advances $4.79 Total Interest for this Period $11.36 Payment Information New Balance $1786.00 Minimum Payment Due $53.00 Payment Due Date 4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account. Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge Purchases 14.99% $533.32 $6.57 Cash Advances 21.99% $265.00 $4.79 Balance Transfers 0.00% $575.67 $0.00 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 8 years $2,785 $62 3 years $2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, any changes to APR’s described below will apply to these transactions. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not go into affect at this time. These changes will go into effect when the Penalty APR no longer applies to your account. 2012 Totals Year-to-Date Total fees charged in 2012 $90.14 Total interest charged in 2012 $18.74 Andrew’s Credit Card Statement 10 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. 9 8 7 6 2 4 5 1 3 Revised Terms, as of 5/10/12 APR for purchases 16.99%
  • 42. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 42 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Important Changes to Your Account Terms • Must be notified of any significant changes • Any changes can only apply to new charges • Account can be closed before the changes go into effect Other than implementation of the Penalty APR, will there be any other changes to Andrew’s account terms? Yes, his APR for Purchases is increasing to 16.99% Summary of Account Activity Previous Balance 535.07 Payments -450.00 Purchases +517.12 Balance Transfers +785.00 Cash Advances +318.00 Past Due Amount +0.00 Fees Charged +69.45 Interest Charged +11.36 New Balance $1,786.00 Credit Limit $2,000.00 Available credit $214.00 Statement closing date 3/22/2012 Days in billing cycle 30 Transactions Reference Number Trans Date Post Date Description of Transaction or Credit Amount XXXX1 2/22 2/23 Store #1 $517.12 XXXX2 2/25 2/25 Payment $450.00 - XXXX3 2/26 2/26 Cash Advance $318.00 XXXX4 2/27 3/1 Balance Transfer $785.00 Fees XXXX5 2/23 2/23 Late Fee $35.00 XXXX6 2/27 2/27 Balance Transfer Fee $23.55 XXXX7 2/28 2/28 Cash Advance Fee $10.90 Total Fees for this Period $69.45 Interest Charged Interest Charge on Purchases $6.57 Interest Charge on Cash Advances $4.79 Total Interest for this Period $11.36 Payment Information New Balance $1786.00 Minimum Payment Due $53.00 Payment Due Date 4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account. Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge Purchases 14.99% $533.32 $6.57 Cash Advances 21.99% $265.00 $4.79 Balance Transfers 0.00% $575.67 $0.00 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 8 years $2,785 $62 3 years $2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, any changes to APR’s described below will apply to these transactions. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not go into affect at this time. These changes will go into effect when the Penalty APR no longer applies to your account. 2012 Totals Year-to-Date Total fees charged in 2012 $90.14 Total interest charged in 2012 $18.74 Andrew’s Credit Card Statement 10 9 8 7 6 2 4 5 1 3 Revised Terms, as of 5/10/12 APR for purchases 16.99% Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, any changes to APR’s described below will apply to these transactions. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not go into affect at this time. These changes will go into effect when the Penalty APR no longer applies to your account. Revised Terms, as of 5/10/12 APR for purchases 16.99%
  • 43. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 43 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Transactions • List of all transactions since the last statement • Should be reviewed for errors Fees and Interest Charged • Fees and interest charges must be listed separately Does Andrew owe a late fee? Yes, he owes a $35.00 late fee Summary of Account Activity Previous Balance 535.07 Payments -450.00 Purchases +517.12 Balance Transfers +785.00 Cash Advances +318.00 Past Due Amount +0.00 Fees Charged +69.45 Interest Charged +11.36 New Balance $1,786.00 Credit Limit $2,000.00 Available credit $214.00 Statement closing date 3/22/2012 Days in billing cycle 30 Transactions Reference Number Trans Date Post Date Description of Transaction or Credit Amount XXXX1 2/22 2/23 Store #1 $517.12 XXXX2 2/25 2/25 Payment $450.00 - XXXX3 2/26 2/26 Cash Advance $318.00 XXXX4 2/27 3/1 Balance Transfer $785.00 Fees XXXX5 2/23 2/23 Late Fee $35.00 XXXX6 2/27 2/27 Balance Transfer Fee $23.55 XXXX7 2/28 2/28 Cash Advance Fee $10.90 Total Fees for this Period $69.45 Interest Charged Interest Charge on Purchases $6.57 Interest Charge on Cash Advances $4.79 Total Interest for this Period $11.36 Payment Information New Balance $1786.00 Minimum Payment Due $53.00 Payment Due Date 4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account. Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge Purchases 14.99% $533.32 $6.57 Cash Advances 21.99% $265.00 $4.79 Balance Transfers 0.00% $575.67 $0.00 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 8 years $2,785 $62 3 years $2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, any changes to APR’s described below will apply to these transactions. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not go into affect at this time. These changes will go into effect when the Penalty APR no longer applies to your account. 2012 Totals Year-to-Date Total fees charged in 2012 $90.14 Total interest charged in 2012 $18.74 Andrew’s Credit Card Statement 10 9 8 7 6 2 4 5 1 3 Revised Terms, as of 5/10/12 APR for purchases 16.99% Transactions Reference Number Trans Date Post Date Description of Transaction or Credit Amount XXXX1 2/22 2/23 Store #1 $535.07 XXXX2 2/25 2/26 Payment $450.00 - XXXX3 2/26 2/26 Cash Advance $318.00 XXXX4 3/15 3/17 Balance Transfer $785.00 Fees XXXX5 2/23 2/23 Late Fee $35.00 XXXX6 2/27 2/27 Balance Transfer Fee $23.55 XXXX7 2/28 2/28 Cash Advance Fee $10.90 Total Fees for this Period $69.45 Interest Charged Interest Charge on Purchases $6.59 Interest Charge on Cash Advances $4.79 Total Interest for this Period $11.36 2012 Totals Year-to-Date Total fees charged in 2012 $90.14 Total interest charged in 2012 $18.74
  • 44. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 44 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Year-to-Date Totals Total amount paid in fees and interest charges for the current year What is the total amount of interest Andrew has paid in the year 2012? $18.74 Interest Charge Calculation Summary of the different types of transactions Why is it important to understand how to read a credit card statement? Summary of Account Activity Previous Balance 535.07 Payments -450.00 Purchases +517.12 Balance Transfers +785.00 Cash Advances +318.00 Past Due Amount +0.00 Fees Charged +69.45 Interest Charged +11.36 New Balance $1,786.00 Credit Limit $2,000.00 Available credit $214.00 Statement closing date 3/22/2012 Days in billing cycle 30 Transactions Reference Number Trans Date Post Date Description of Transaction or Credit Amount XXXX1 2/22 2/23 Store #1 $517.12 XXXX2 2/25 2/25 Payment $450.00 - XXXX3 2/26 2/26 Cash Advance $318.00 XXXX4 2/27 3/1 Balance Transfer $785.00 Fees XXXX5 2/23 2/23 Late Fee $35.00 XXXX6 2/27 2/27 Balance Transfer Fee $23.55 XXXX7 2/28 2/28 Cash Advance Fee $10.90 Total Fees for this Period $69.45 Interest Charged Interest Charge on Purchases $6.57 Interest Charge on Cash Advances $4.79 Total Interest for this Period $11.36 Payment Information New Balance $1786.00 Minimum Payment Due $53.00 Payment Due Date 4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account. Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge Purchases 14.99% $533.32 $6.57 Cash Advances 21.99% $265.00 $4.79 Balance Transfers 0.00% $575.67 $0.00 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 8 years $2,785 $62 3 years $2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, any changes to APR’s described below will apply to these transactions. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not go into affect at this time. These changes will go into effect when the Penalty APR no longer applies to your account. 2012 Totals Year-to-Date Total fees charged in 2012 $90.14 Total interest charged in 2012 $18.74 Andrew’s Credit Card Statement 10 9 8 7 6 2 4 5 1 3 Revised Terms, as of 5/10/12 APR for purchases 16.99% Transactions Reference Number Trans Date Post Date Description of Transaction or Credit Amount XXXX1 2/22 2/23 Store #1 $535.07 XXXX2 2/25 2/25 Payment $450.00 - XXXX3 2/26 2/26 Cash Advance $318.00 XXXX4 2/27 3/11 Balance Transfer $785.00 Fees XXXX5 2/23 2/23 Late Fee $35.00 XXXX6 2/27 2/27 Balance Transfer Fee $23.55 XXXX7 2/28 2/28 Cash Advance Fee $10.90 Total Fees for this Period $69.45 Interest Charged Interest Charge on Purchases $6.57 Interest Charge on Cash Advances $4.79 Total Interest for this Period $11.36 2012 Totals Year-to-Date Total fees charged in 2012 $90.14 Total interest charged in 2012 $18.74 Interest Charge Calculation Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge Purchases 14.99% $533.32 $6.57 Cash Advances 21.99% $265.00 $4.79 Balance Transfers 0.00% $575.67 $0.00
  • 45. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 45 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 Be Andrew’s Financial Advisor Andrew has come to you and voiced his concerns about having a credit card. He is considering getting rid of his credit card. As a “financial advisor,” you understand that credit cards are financial tools that can be used or abused. What three pieces of advice will you give Andrew?
  • 46. © Take Charge Today – August 2013 – Understanding Credit Cards – Slide 46 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.6.3.G1 To avoid paying interest on a credit card, pay the balance in full every month A credit card can have a positive or a negative impact on credit history Credit card companies are required to disclose the terms and fees of a credit card If you apply for credit and are approved, be sure to review the final credit terms offered Credit card statements outline important information about a credit card and should be checked carefully for errors Summary