- Jenny received her first credit card in college with a $2,500 limit and charged the full amount. She only paid the minimum payment of $50 each month. With an interest rate of 19.8%, it will take her 8 years and 9 months to pay off the balance, paying a total of $5,325.18 and paying $2,825.18 in interest charges.
2. Something to think About
Twenty-one year old Jenny felt rich when she received her
first credit card during her junior year of college. She
charged $2,500, her credit limit, the first month. Every
month after that, she was careful about paying on time,
but only sent in the minimum monthly payment,
$50.00.With an interest rate of 19.8%, even though
she never charged another item, it will take her 8 years
and 9 months to pay off her account.When her
account has a zero balance, she will have paid a total of
$5,325.18.Therefore, she will have paid $2,825.18 in
interest.
3. Credit Card
Credit Card
Credit
When goods, services or money is received in
exchange for a promise to pay a definite sum of
money at a future date
The price of money- when referring to credit,
interest is the charge for borrowing money
CREDIT-
INTEREST
-
4. Credit Card
Credit Card
Lender and Borrower
LENDER-
The person or organization
who has the resources to
provide the individual with a
loan
BORROWER-
The person or
organization that is
receiving the money from
the lender
5. Credit Card
Credit Card
Closed-end vs.
Open-end Credit
Characteristics Closed-end credit
Open-end
(revolving) credit
Definition A one-time loan
Credit extended in
advance
Purpose of loan Specified in application
May be used for a variety
of purposes
6. Credit Card
Credit Card
Closed-end vs.
Open-end Credit
Characteristics
Closed-end
credit
Open-end credit
Payments
Specified number of
equal payments
Varies- can be paid in one
payment or a series of
equal or unequal payments
Loan Amount
Agreed upon during the
application process
May be increased for
responsible consumers
Examples
Mortgage, automobile,
education loans
Credit cards
7. Credit Card
Credit Card
Credit Card
What is a credit card?
Pre-approved credit which can be used for the purchase of goods
and services now and payment of them later
A credit cards credit limit varies based upon an
individual’s perceived creditworthiness
Credit limit is the
maximum dollar
amount loaned
Creditworthiness is an
individuals ability and willingness
to pay the money back
8. Credit Card
Credit Card
Credit Card
Interest
Interest is charged each month the
balance is not paid in full
The cost of credit expressed as
a yearly interest rate
Rate at which interest is
charged is referred to as:
Annual Percentage
Rate (APR)
9. Credit Card
Credit Card
Minimum Payments
• Required to make at least a minimum payment each
month
– Usually only a small percentage (2.5-5%) of the total
balance due
• Cardholders who only make the minimum payment:
– Make slow progress paying off card balance
– Pay substantially more than what was initially charged to
the card
10. Credit Card
Credit Card
Minimum Payments
Amount
charged to
credit card
in one
purchase
APR
Minimum
payment
Time to
pay off the
credit card
Total
amount
paid in
interest
Total
amount
paid
$2,000 18% $50.00 62 months $1,077.25 $3,077.25
$500 12% $25.00 23 months $60.67 $560.67
12. Credit Card
Credit Card
Advantages to using
Credit Cards
Advantages
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 because of the Fair Credit
Billing Act protection
Possibility of receiving bonuses, such
as frequent flyer miles or cash rebates
13. Credit Card
Credit Card
Disadvantages to using
Credit Cards
Disadvantages
Interest can be costly when
a balance is revolved
Additional penalty fees
may apply
Tempting to overspend
Risk of identity theft
Responsible for lost/stolen cards
Applying for multiple accounts can
lower your credit score
14. Credit Card
Credit Card
Debit Cards
• What is a debit card?
– A plastic card which looks like a credit card, but is
electronically connected to the cardholder’s bank
account
– Money is immediately withdrawn from the cardholders
checking account
What is the difference between a credit
card and a debit card?
15. Credit Card
Credit Card
Credit History
Credit Report
A record of a consumer’s credit history that includes information about
credit card use as well as the use of other types of credit, such as auto
loans, student loans and mortgage loans
A number that summarizes an individual’s credit record and history. It is a
numeric “grade” of a consumer’s financial reliability
Credit Score
Credit cards can have a positive or negative
impact on an individuals credit history
16. Credit Card
Credit Card
Positive Credit
Card use
Proper credit
card use
Helps develop
positive credit
history and credit
report
Earn a high
credit score
A high credit score gives the consumer the opportunity
to have lower interest rates on loans, the privilege to
use different forms of credit, and an easier approval
process for future credit
17. Credit Card
Credit Card
Positive Credit
Card Use
• Examples of positive credit card behaviors?
– Paying credit card balances in full every month
– Paying credit card bills on time
– Applying for only credit cards that are needed
– Keeping track of all charges by keeping receipts and
using a check register
– Checking the monthly credit card statement for errors
18. Credit Card
Credit Card
Negative Credit
Card Use
Consumers with low credit scores have difficulty
getting loans, difficulty renting apartments, pay
higher interest rates, pay higher insurance rates, and
have difficulty obtaining a job
Improper
credit card use
Develops
negative credit
history and credit
report
Lower credit
score
19. Credit Card
Credit Card
Negative Credit
Card use
• Examples of negative credit card behaviors?
– Making late credit card payments
– Paying only the minimum payment
– Exceeding the card’s credit limit (usually triggers a
penalty fee)
– Charging items that can’t be paid off immediately
– Owning too many credit cards
20. Credit Card
Credit Card
NO Credit
• If an individual has not used credit, they will not
have any information in their credit report
• Not having a credit report can cause an individual
to be denied credit
21. Credit Card
Credit Card
Credit Card Offers
Credit card issuers are required to disclose
the terms and fees of credit cards in an
easy to read box format
This is called the Schumer box
22. Credit Card
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
This section discloses the
interest paid for purchases on
the card. Multiple interest rates
may be listed here, because the
final interest rate may depend
on the creditworthiness of the
applicant
23. 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
Introductory Rate
If the credit card has an
introductory rate it will be
shown in this section, which is
the APR charged during the
credit card's introductory period
after a credit card account is
opened. The card will have a
different APR after the
introductory period ends
What is the introductory rate for
this credit card offer?
The introductory rate depends
on the creditworthiness of the
applicant, but it will be
12.99%, 13.99%, or 14.99%
24. 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
Variable-rate APR
Some cards will have a
variable-rate APR, which is
an APR that may change
depending on other factors, such
as the prime rate. The prime
rate is an index that represents
the interest rate most banks
charge their most credit-worthy
customers
What is the APR for Purchases for
this credit card offer?
14.99%
Is this a variable-rate APR
or a fixed-rate APR?
Variable-rate APR
25. 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
This section discloses the interest
paid for balance transfers,
which is the act of transferring
debt from one credit card account
to another. Balance transfer fees
may apply, even if the balance
transfer APR is 0%
What is the APR for balance
transfers for this credit card offer?
15.99%
26. Credit Card
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
•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 Cash Advances
This section discloses the interest
paid for cash advances, such as
withdrawing cash from an ATM
using a credit card. Cash advance
fees may also apply
What is the APR for cash advances
for this credit card offer?
21.99%
27. 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 and
When it Applies
This section discloses the penalty
APR, as well as the penalty terms
that trigger the penalty APR to
take effect
•Penalty APR is the interest
rate charged on new transactions
if the penalty terms in the credit
card contract are triggered
What is the Penalty APR for this
credit card offer?
21.99%
28. Credit Card
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
This section explains how you
can avoid interest charges on a
credit card
How can a cardholder avoid paying
interest on a credit card?
By paying credit card bills
in full by the due date
29. Credit Card
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
Minimum Interest
Charge
Credit card companies often
have a minimum interest
amount. These charges
typically range from $0.50 to
$2 per month and are
disclosed in this section of the
credit card offer
What is the minimum interest charge
for this credit card?
$1.50
30. Credit Card
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
For Credit Card Tips
from the Federal Reserve
Board
This section directs
consumers to the Federal
Reserve website to obtain
more information about credit
cards
31. 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
This section discloses any set-
up and maintenance fees for
the card, which can include
annual fees, account set-up
fees, participation fees, and
additional card fees
•Annual fee is a yearly fee
that may be charged for
having a credit card
What is the annual fee
for this credit card?
$20
32. Credit Card
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
Transcation Fees
This section discloses any
transaction fees for the card,
which can include balance
transfer fees, cash advance
fees, and foreign transaction
fees
What is the fee for cash
advances for this card?
$5 or 3% of the
amount of each cash
advance (whichever is
greater)
33. 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
This section discloses the
penalty fees for the card,
which can include late-
payment, over-the-limit, and
returned payment fees
•Late payment fee is
charged when a cardholder
does not make the minimum
monthly payment by the due
date
•Over-the-limit fee is
charged if the account balance
goes over the set credit limit
Does this card have an
over-the limit fee?
Yes, the over-the-limit fee is
34. Credit Card
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 can use
one of several methods to
calculate the outstanding
balance on a credit card. The
method used is disclosed in
this section
What method is used to calculate the
balance on this card?
Average daily balance
(including new purchases)
35. 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
How can the introductory APR be
lost on this card?
If the cardholder is more
than 60 days late in paying
the bill
What APR will the cardholder
be charged if the introductory
rate is lost?
The Penalty APR of
28.99%
36. Credit Card
Credit Card
Credit Card Benefits
• Research benefits that may be received from the card
– Cash rebates
– Warranties for items purchased with the card
– Travel accident insurance
– Frequent flyer miles
• Make sure to know all terms and conditions of card
benefits
• Cards that offer benefits may charge fees or higher
interest rates
37. Credit Card
Credit Card
Receiving a
Credit Card
1. Compare credit card offers and determine which
card to apply for
2. Complete a credit application
– A form requesting information about a person’s ability
to repay and the applicant’s age
– Can be completed through the mail, the internet or
over the phone
38. Credit Card
Credit Card
Receiving a
Credit Card
3. Lenders conduct a credit investigation
– A comparison of information on credit application to
information on a credit report
4. Applicants may or may not be approved for the card
they apply for
– Approval depends on the applicant's credit history
39. Credit Card
Credit Card
Pre-Approved Credit
Card Applications
• Credit card companies send pre-approved credit
card applications in the mail
– If an individual is pre-approved for that particular
card, they have passed the initial credit check
Let’s do some comparison shopping…
40. Credit Card
Credit Card
Credit Card
Statements
• Credit card statements outline important
information about the card
• The 2009 CARD Act required credit card
companies to include specific information about a
card account in the statement
Andrew’s Credit Card Statement
Please help Andrew interpret his credit card statement.
41. Transactions
Reference
Number
Trans
Date
Post Date Description of Transaction or Credit Amount
XXXX1 2/22 2/23 Store #1 $529.57
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 $6.31
Interest Charge on Cash Advances $4.58
Total Interest for this Period $10.89
Payment Information
New Balance $1784.53
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
Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge
Purchases 14.99% $512.14 $6.31
Cash Advances 21.99% $253.50 $4.58
Balance Transfers 0.00% $637.50 $0.00
Summary of Account Activity
Previous Balance 535.07
Payments -450.00
Purchases +529.57
Balance Transfers +785.00
Cash Advances +318.00
Past Due Amount +0.00
Fees Charged +69.45
Interest Charged +10.89
New Balance $1,784.53
Credit Limit $2,000.00
Available credit $215.47
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
10 years $3,284
$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 hose 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, APR for Purchases
will increase to 16.99%.
Transactions made before 4/9/12: Current APRs will continue to apply to
these transactions.
2012 Totals Year-to-Date
Total fees charged in 2012 $90.14
Total interest charged in 2012 $18.27
Andrew’s Credit Card Statement
Summary of Account
Activity
This section includes payments,
credits, purchases, balance
transfers, cash advances, fees,
interest charges, amounts past
due, the new balance, available
credit, and the last day of the
billing period
How much did Andrew charge in
new purchases during this credit card
billing cycle?
$529.57 10
9
8
7
6
2
4
5
1
3
42. Transactions
Reference
Number
Trans
Date
Post Date Description of Transaction or Credit Amount
XXXX1 2/22 2/23 Store #1 $529.57
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 $6.31
Interest Charge on Cash Advances $4.58
Total Interest for this Period $10.89
Payment Information
New Balance $1784.53
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
Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge
Purchases 14.99% $512.14 $6.31
Cash Advances 21.99% $253.50 $4.58
Balance Transfers 0.00% $637.50 $0.00
Summary of Account Activity
Previous Balance 535.07
Payments -450.00
Purchases +529.57
Balance Transfers +785.00
Cash Advances +318.00
Past Due Amount +0.00
Fees Charged +69.45
Interest Charged +10.89
New Balance $1,784.53
Credit Limit $2,000.00
Available credit $215.47
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
10 years $3,284
$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 hose 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, APR for Purchases
will increase to 16.99%.
Transactions made before 4/9/12: Current APRs will continue to apply to
these transactions.
2012 Totals Year-to-Date
Total fees charged in 2012 $90.14
Total interest charged in 2012 $18.27
Andrew’s Credit Card Statement
10
9
8
7
6
2
4
5
1
3
Payment Information
This section includes the total
new balance, the minimum
payment amount, and the date
payment is due
What is Andrew’s minimum payment
due for this billing cycle?
$53.00
43. Transactions
Reference
Number
Trans
Date
Post Date Description of Transaction or Credit Amount
XXXX1 2/22 2/23 Store #1 $529.57
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 $6.31
Interest Charge on Cash Advances $4.58
Total Interest for this Period $10.89
Payment Information
New Balance $1784.53
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
Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge
Purchases 14.99% $512.14 $6.31
Cash Advances 21.99% $253.50 $4.58
Balance Transfers 0.00% $637.50 $0.00
Summary of Account Activity
Previous Balance 535.07
Payments -450.00
Purchases +529.57
Balance Transfers +785.00
Cash Advances +318.00
Past Due Amount +0.00
Fees Charged +69.45
Interest Charged +10.89
New Balance $1,784.53
Credit Limit $2,000.00
Available credit $215.47
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
10 years $3,284
$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 hose 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, APR for Purchases
will increase to 16.99%.
Transactions made before 4/9/12: Current APRs will continue to apply to
these transactions.
2012 Totals Year-to-Date
Total fees charged in 2012 $90.14
Total interest charged in 2012 $18.27
Andrew’s Credit Card Statement
10
9
8
7
6
2
4
5
1
3
Late Payment Warning
This section states any
additional fees and the higher
interest rate that may be charged
if a payment is late
How much is Andrew’s
late payment fee?
$35
44. Transactions
Reference
Number
Trans
Date
Post Date Description of Transaction or Credit Amount
XXXX1 2/22 2/23 Store #1 $529.57
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 $6.31
Interest Charge on Cash Advances $4.58
Total Interest for this Period $10.89
Payment Information
New Balance $1784.53
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
Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge
Purchases 14.99% $512.14 $6.31
Cash Advances 21.99% $253.50 $4.58
Balance Transfers 0.00% $637.50 $0.00
Summary of Account Activity
Previous Balance 535.07
Payments -450.00
Purchases +529.57
Balance Transfers +785.00
Cash Advances +318.00
Past Due Amount +0.00
Fees Charged +69.45
Interest Charged +10.89
New Balance $1,784.53
Credit Limit $2,000.00
Available credit $215.47
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
10 years $3,284
$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 hose 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, APR for Purchases
will increase to 16.99%.
Transactions made before 4/9/12: Current APRs will continue to apply to
these transactions.
2012 Totals Year-to-Date
Total fees charged in 2012 $90.14
Total interest charged in 2012 $18.27
Andrew’s Credit Card Statement
10
9
8
7
6
2
4
5
1
3
Minimum Payment
Warning
This section includes an
estimate of how long it can take
to pay off a credit card balance
if only the minimum payment is
made each month, and an
estimate of the total amount
paid, including interest, if the
bill is paid in three years
(assuming no additional charges
are made)
How long will it take Andrew to pay
off the balance of his credit card if he
only pays the minimum payment?
10 years
45. Transactions
Reference
Number
Trans
Date
Post Date Description of Transaction or Credit Amount
XXXX1 2/22 2/23 Store #1 $529.57
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 $6.31
Interest Charge on Cash Advances $4.58
Total Interest for this Period $10.89
Payment Information
New Balance $1784.53
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
Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge
Purchases 14.99% $512.14 $6.31
Cash Advances 21.99% $253.50 $4.58
Balance Transfers 0.00% $637.50 $0.00
Summary of Account Activity
Previous Balance 535.07
Payments -450.00
Purchases +529.57
Balance Transfers +785.00
Cash Advances +318.00
Past Due Amount +0.00
Fees Charged +69.45
Interest Charged +10.89
New Balance $1,784.53
Credit Limit $2,000.00
Available credit $215.47
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
10 years $3,284
$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 hose 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, APR for Purchases
will increase to 16.99%.
Transactions made before 4/9/12: Current APRs will continue to apply to
these transactions.
2012 Totals Year-to-Date
Total fees charged in 2012 $90.14
Total interest charged in 2012 $18.27
Andrew’s Credit Card Statement
10
9
8
7
6
2
4
5
1
3
Notice of Changes to
Your Interest Rates
If a cardholder triggers the
Penalty APR, the credit card
issuer must notify them on their
statement that their rates will be
increasing
Has Andrew triggered
the Penalty APR?
Yes, he will pay 28.99% on
all transactions made after
4/9/12.
46. Transactions
Reference
Number
Trans
Date
Post Date Description of Transaction or Credit Amount
XXXX1 2/22 2/23 Store #1 $529.57
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 $6.31
Interest Charge on Cash Advances $4.58
Total Interest for this Period $10.89
Payment Information
New Balance $1784.53
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
Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge
Purchases 14.99% $512.14 $6.31
Cash Advances 21.99% $253.50 $4.58
Balance Transfers 0.00% $637.50 $0.00
Summary of Account Activity
Previous Balance 535.07
Payments -450.00
Purchases +529.57
Balance Transfers +785.00
Cash Advances +318.00
Past Due Amount +0.00
Fees Charged +69.45
Interest Charged +10.89
New Balance $1,784.53
Credit Limit $2,000.00
Available credit $215.47
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
10 years $3,284
$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 hose 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, APR for Purchases
will increase to 16.99%.
Transactions made before 4/9/12: Current APRs will continue to apply to
these transactions.
2012 Totals Year-to-Date
Total fees charged in 2012 $90.14
Total interest charged in 2012 $18.27
Andrew’s Credit Card Statement
10
9
8
7
6
2
4
5
1
3
Important Changes to
Your Account Terms
In this section of the statement,
cardholders must be notified of
any raise in rates or fees or any
other significant changes to the
account
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%.
47. Transactions
Reference
Number
Trans
Date
Post Date Description of Transaction or Credit Amount
XXXX1 2/22 2/23 Store #1 $529.57
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 $6.31
Interest Charge on Cash Advances $4.58
Total Interest for this Period $10.89
Payment Information
New Balance $1784.53
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
Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge
Purchases 14.99% $512.14 $6.31
Cash Advances 21.99% $253.50 $4.58
Balance Transfers 0.00% $637.50 $0.00
Summary of Account Activity
Previous Balance 535.07
Payments -450.00
Purchases +529.57
Balance Transfers +785.00
Cash Advances +318.00
Past Due Amount +0.00
Fees Charged +69.45
Interest Charged +10.89
New Balance $1,784.53
Credit Limit $2,000.00
Available credit $215.47
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
10 years $3,284
$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 hose 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, APR for Purchases
will increase to 16.99%.
Transactions made before 4/9/12: Current APRs will continue to apply to
these transactions.
2012 Totals Year-to-Date
Total fees charged in 2012 $90.14
Total interest charged in 2012 $18.27
Andrew’s Credit Card Statement
10
9
8
7
6
2
4
5
1
3
Transactions
This section includes a list of all
the transactions that have
occurred since the last statement
(purchases, payments, credits,
cash advances, and balance
transfers). This section should
be carefully reviewed by the
cardholder to ensure there are
no unauthorized charges or
errors
How much did Andrew charge on
his credit card to Store #1?
$529.57
48. Transactions
Reference
Number
Trans
Date
Post Date Description of Transaction or Credit Amount
XXXX1 2/22 2/23 Store #1 $529.57
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 $6.31
Interest Charge on Cash Advances $4.58
Total Interest for this Period $10.89
Payment Information
New Balance $1784.53
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
Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge
Purchases 14.99% $512.14 $6.31
Cash Advances 21.99% $253.50 $4.58
Balance Transfers 0.00% $637.50 $0.00
Summary of Account Activity
Previous Balance 535.07
Payments -450.00
Purchases +529.57
Balance Transfers +785.00
Cash Advances +318.00
Past Due Amount +0.00
Fees Charged +69.45
Interest Charged +10.89
New Balance $1,784.53
Credit Limit $2,000.00
Available credit $215.47
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
10 years $3,284
$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 hose 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, APR for Purchases
will increase to 16.99%.
Transactions made before 4/9/12: Current APRs will continue to apply to
these transactions.
2012 Totals Year-to-Date
Total fees charged in 2012 $90.14
Total interest charged in 2012 $18.27
Andrew’s Credit Card Statement
10
9
8
7
6
2
4
5
1
3
Fees and Interest Charged
Credit card issuers must list the
fees and interest charges
separately on the monthly
statement. Interest charges must
be listed by type of transaction
Did Andrew pay a late fee?
Yes, he paid $35.00 for a late
fee.
49. Transactions
Reference
Number
Trans
Date
Post Date Description of Transaction or Credit Amount
XXXX1 2/22 2/23 Store #1 $529.57
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 $6.31
Interest Charge on Cash Advances $4.58
Total Interest for this Period $10.89
Payment Information
New Balance $1784.53
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
Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge
Purchases 14.99% $512.14 $6.31
Cash Advances 21.99% $253.50 $4.58
Balance Transfers 0.00% $637.50 $0.00
Summary of Account Activity
Previous Balance 535.07
Payments -450.00
Purchases +529.57
Balance Transfers +785.00
Cash Advances +318.00
Past Due Amount +0.00
Fees Charged +69.45
Interest Charged +10.89
New Balance $1,784.53
Credit Limit $2,000.00
Available credit $215.47
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
10 years $3,284
$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 hose 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, APR for Purchases
will increase to 16.99%.
Transactions made before 4/9/12: Current APRs will continue to apply to
these transactions.
2012 Totals Year-to-Date
Total fees charged in 2012 $90.14
Total interest charged in 2012 $18.27
Andrew’s Credit Card Statement
10
9
8
7
6
2
4
5
1
3
Year-to-Date Totals
The total amount paid in fees
and interest charges for the
current year must be shown on
the statement
What is the total amount of interest
Andrew has paid in the year 2012?
$18.27
50. Transactions
Reference
Number
Trans
Date
Post Date Description of Transaction or Credit Amount
XXXX1 2/22 2/23 Store #1 $529.57
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 $6.31
Interest Charge on Cash Advances $4.58
Total Interest for this Period $10.89
Payment Information
New Balance $1784.53
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
Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge
Purchases 14.99% $512.14 $6.31
Cash Advances 21.99% $253.50 $4.58
Balance Transfers 0.00% $637.50 $0.00
Summary of Account Activity
Previous Balance 535.07
Payments -450.00
Purchases +529.57
Balance Transfers +785.00
Cash Advances +318.00
Past Due Amount +0.00
Fees Charged +69.45
Interest Charged +10.89
New Balance $1,784.53
Credit Limit $2,000.00
Available credit $215.47
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
10 years $3,284
$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 hose 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, APR for Purchases
will increase to 16.99%.
Transactions made before 4/9/12: Current APRs will continue to apply to
these transactions.
2012 Totals Year-to-Date
Total fees charged in 2012 $90.14
Total interest charged in 2012 $18.27
Andrew’s Credit Card Statement
10
9
8
7
6
2
4
5
1
3
Interest Charge
Calculation
This section includes a summary
of the interest rates on the
different types of transactions,
account balances, the amount of
each, and the interest charged
for each type of transaction
What interest rate is Andrew paying
on cash advances?
21.99%
Let’s take a look at another credit card statement…
51. Credit Card
Credit Card
Cardholder
Protections & Rights
Limits liability for unauthorized credit
card charges to $50.00 per card
Must write a letter within 60 days of the
first bill containing the error
If a credit card number is used fraudulently but the card
itself was not used, the individual has no personal liability
52. Credit Card
Credit Card
Cardholder
Protections & Rights
– To receive a credit card, consumers must be 21 years of age
or older
• Consumers under 21 have to either have a co-signer or show
documentation of sufficient income to make payments
• If someone agrees to be a co-signer on an account, they are equally
responsible for the loan
– Interest rates on existing balances generally can’t be raised
unless a cardholder is 60 days or more past due
2009 CARD Act
53. Credit Card
Credit Card
Cardholder
Protections & Rights
– Must be notified of any significant changes in rates and fees
at least 45 days before the changes take effect
• Any changes made to an account can only apply to future
transactions (new charges)
• Have the option of closing the account before the changes go into
effect
– Cardholders now have to “opt-in” to allowing transactions
that take them over their credit limit
2009 CARD Act
54. Credit Card
Credit Card
Cardholder
Protections & Rights
– Credit card issuers are required to send a monthly
statement at least 21 days before a credit card payment is
due
– Credit card payment due dates must be consistent
month to month
2009 CARD Act
55. Credit Card
Credit Card
Cardholder
Protections & Rights
– Credit card companies cannot increase rates for the first
12 months after an account is open unless:
• The card has a variable interest rate
• The cardholder is more than 60 days late in paying their bill
• The card has an introductory rate (the introductory rate must
be in place for at least 6 months and then the rate can
increase)
2009 CARD Act
56. Credit Card
Credit Card
Cardholder
Protections & Rights
– Some set-up and maintenance fees are charged before the
card is used
– This may reduce the amount of credit initially available
• These non-penalty fees cannot exceed 25% of the initial credit
limit
• For example, if a card has a credit limit of $1,000 the total fees for
the first year (not including penalty fees) cannot exceed $250
2009 CARD Act
57. Credit Card
Credit Card
Credit Card
Safety Tips
Sign card with a
signature and “Please
see ID”
Do not leave cards
lying around, and
report lost or stolen
cards promptly
Close unwanted
accounts by writing
and phone, then cut
up the card
Do not give out
account numbers
unless making a
purchase
Keep a list of all cards,
account numbers, and
phone lists separate from
cards
Shred all pre-approved
credit card offers,
applications, or
solicitations
58. Credit Card
Credit Card
Fair Credit Billing Act
• Helps to protect consumers while using a credit card to
make purchases
• Allows the consumer to not pay for a product or service for
which the consumer has a complaint
• If products are not delivered or if it is not what the
consumer requested, any amount of money that was
credited to the card above the $50.00 fee that consumers
are responsible for will be issued back
• Debit cards do not have the same protection
59. Credit Card
Credit Card
Summary
A credit card is pre-approved credit which can be
used for the purchase of goods and services now
and payment of them later
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 an individual’s credit history
60. Credit Card
Credit Card
Summary
Credit card companies are required to disclose the terms
and fees of a credit card in the Schumer’s box
Credit card statements outline important
information about a credit card and should be
checked carefully for errors
Consumers have many protections and
rights in regards to credit card use