1) The document explains what credit is and different forms of credit like credit cards and loans. It discusses how creditworthiness is assessed when obtaining credit. 2) It describes key credit card terms like annual percentage rate (APR), minimum payments, and interest charges. Making only minimum payments results in higher long-term costs due to interest. 3) The document outlines positive credit behaviors like paying balances in full each month and negative behaviors like late payments that hurt one's credit score. Maintaining good credit is important for future financial opportunities.

1. Understanding a Credit Card
“Take Charge of Your Finances”
rd
Advanced Level
it Ca
Cred

2. 1.4.1.G1
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eCrt dit C
What is Credit?
Cr
Credit- when goods,
services or money is
received in exchange for Credit is derived from
a promise to pay a the Latin word “credo”
meaning “I believe”
definite sum of money at
a future date
Why would a person want to use credit?
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

3. 1.4.1.G1
ard rd
die C a
eCrt dit C
Obtaining Credit
Cr
Lender determines
Borrower requests whether to grant the
Borrower is in need
to receive credit borrower credit based
of credit
from a lender on perceived
creditworthiness
Lender- person or Creditworthiness- an
Borrower- person or organization who has the individual’s ability and
organization that is resources to provide the willingness to pay the
receiving the money borrower money money back
Why would a lender assess a borrower’s
creditworthiness before granting credit?
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

4. 1.4.1.G1
ard rd
die C a
eCrt dit C
Paying Back Credit
Cr
Borrower is
usually expected
If approved, the
to pay interest in Borrower pays
borrower will
addition to the money back
receive money
money borrowed
from the lender
Interest - the
price of money
Why would a lender charge a borrower
interest?
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

5. 1.4.1.G1
ard rd
die C a
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Different Forms of Credit
Cr
How are these forms of credit different?
VS.
Closed-end Credit Open-end Credit
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

6. Closed-end vs.
1.4.1.G1
ard rd
Cr die C a
eCrt dit C
Open-end Credit
Open-end
Closed-end credit
(revolving) credit
Definition Credit extended
A one-time loan
in advance
Purpose of May be used for a
Specified in
loan (what is variety of
application purposes
purchased)
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

7. Closed-end vs.
1.4.1.G1
ard rd
Cr die C a
eCrt dit C
Open-end Credit
Closed-end credit Open-end credit
Varies- can be paid in
Specified number one payment or a series
Payments
of equal payments of equal or unequal
payments
Loan Agreed upon during
May be increased
Amount the application
process
Mortgage,
Examples automobile, Credit cards
education loans
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

8. 1.4.1.G1
ard rd
die C a
eCrt dit C
What is a Credit Card?
Cr
Buy Now, Pay
Later
Pre-approved credit which can be used for the purchase
of goods and services now and payment of them later
May continue to borrow as long as the credit limit
(maximum dollar amount loaned) is not exceeded
Credit limit varies based upon the cardholder’s
perceived creditworthiness
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

9. 1.4.1.G1
Cr
ard rd
die C a
eCrt dit C
Credit Card
Interest
Interest is charged each month the
balance is not paid in full
Rate at which interest is
charged is referred to as:
Annual Percentage
Rate (APR)
The cost of credit expressed as
a yearly interest rate
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

10. 1.4.1.G1
ard rd
die C a
eCrt dit C
Minimum Payments
Cr
• Required to make at least a minimum
payment each month
– Usually only a small percentage (2.5-5%) of the
total balance due
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

11. 1.4.1.G1
ard rd
die C a
eCrt dit C
Minimum Payments
Cr
To prepare for her first semester of college, Miranda purchased a
new computer for $1000 and textbooks for $500, spending a total
of $1500 on her credit card charging 15% APR. How much would
Miranda pay in interest if she makes the minimum payment?
~ Total
Payment ~ Time to ~ Total
amount of
Made pay off card amount paid
interest paid
Full Payment $1500 1 month $0 $1500
Partial
$135 1 year $125 $1625
Payment
Minimum
$30 11 years $1413 $2913
Payment
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

12. 1.4.1.G1
Cr
ard rd
die C a
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Advantages & Disadvantages
to Using Credit Cards
• Convenient payment tool • Interest can be costly when a
• Useful for emergencies balance is revolved
• Often required to hold a • Additional penalty fees may
reservation apply
• Able to purchase “big ticket” • Tempting to overspend
items and spread out • Risk of identity theft
payments • Responsible for lost/stolen
• Protection against fraud cards
• Opportunity to establish a • Applying for multiple accounts
positive credit history in a short period of time can
• Online shopping is safer than lower your credit score
using a debit card
• Possibility of receiving bonuses
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

13. 1.4.1.G1
ard rd
die C a
eCrt dit C
What is a Debit Card?
Cr
• 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?
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

14. 1.4.1.G1
ard rd
die C a
eCrt dit C
Creditworthiness
Cr
Credit card approval How a person uses a
depends on credit card affects
borrower’s perceived their
creditworthiness creditworthiness
Creditworthiness is determined by a
credit report and/or credit score
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

15. 1.4.1.G1
ard rd
die C a
eCrt dit C
Credit History
Cr
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
Credit Score
A number that summarizes an individual’s credit record and history; a
numeric “grade” of a consumer’s financial reliability
Credit cards can have a positive or negative
impact on an individual’s credit history
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

16. 1.4.1.G1
Cr
ard rd
die C a
eCrt dit C Positive Credit
Card Use
Helps develop
Proper credit positive credit Earn a high
card use history and credit score
credit report
A high credit score gives 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
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

17. 1.4.1.G1
Cr
ard rd
die C a
eCrt dit C
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
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

18. 1.4.1.G1
Cr
ard rd
die C a
eCrt dit C Negative Credit
Card Use
Develops
Improper negative
Lower credit
credit card credit history
and credit score
use
report
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
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

19. 1.4.1.G1
Cr
ard rd
die C a
eCrt dit C
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
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

20. 1.4.1.G1
ard rd
die C a
eCrt dit C
NO Credit
Cr
• 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
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

21. 1.4.1.G1
ard rd
die C a
eCrt dit C
Credit Card Offers
Cr
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
Must direct to the Federal Reserve website (
http://www.federalreserve.gov/creditcard/) to obtain more
information about credit cards
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

22. it Card
Cred Interest Rates and Interest Charges
Annual Percentage 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your
Rate (APR) for creditworthiness.
Purchases 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 15.99%
Transfers •This APR will vary with the market based on the Prime Rate
APR for Cash 21.99%
Advances •This APR will vary with the market based on the Prime Rate
Penalty APR and 28.99%
When it Applies This APR may be applied to your account if you:
1.Make a late payment;
2.Go over your credit limit;
Credit cards may charge
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
many different types of
reasons, the Penalty APR will apply until you make six consecutive minimum payments
when due.
How to Avoid Paying Your due date is at least 25 days after the close of each billing cycle. We will not charge
interest rates
Interest on you any interest on purchases if you pay your entire balance by the due date each
Purchases month.
Minimum Interest If you are charged interest, the charge will be no less than $1.50.
Charge
For Credit Card Tips To learn more about factors to consider when applying for or using a credit card, visit the
from the Federal website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
Annual Percentage Rate (APR) Reserve Board
Set-up and
Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin
for Purchases Maintenance Fees 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.
•Interest rate paid for purchases •Annual Fee: $20
•Account Set-up Fee: $20 (one-time fee)
•Participation Fee: $12 annually ($1 per month)
•Multiple interest rates may be Transaction Fees
•Additional Card Fee: $5 annually (if applicable)
• Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is
greater (maximum fee: $100)
listed - final interest rate may •
•
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
depend on creditworthiness of 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
applicant • 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

23. Fixed vs. Variable-rate APR
Interest Rates and Interest Charges
•Fixed-rate APR- cannot Annual Percentage
Rate (APR) for
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your
creditworthiness.
change during the period of
Purchases 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 15.99%
time outlined in a credit card
Transfers •This APR will vary with the market based on the Prime Rate
APR for Cash 21.99%
Advances •This APR will vary with the market based on the Prime Rate
agreement
Penalty APR and 28.99%
When it Applies 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.
•Variable-rate APR- may
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.
change depending on other
How to Avoid Paying Your due date is at least 25 days after the close of each billing cycle. We will not charge
Interest on you any interest on purchases if you pay your entire balance by the due date each
Purchases month.
factors (such as economic
Minimum Interest If you are charged interest, the charge will be no less than $1.50.
Charge
For Credit Card Tips To learn more about factors to consider when applying for or using a credit card, visit the
conditions)
from the Federal website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
Reserve Board
Fees
Set-up and NOTICE: Some of these set-up and maintenance fees will be assessed before you begin
Maintenance Fees using your card and will reduce the amount of credit you initially have available. For
What is the APR for Purchases example, if you are assigned the minimum credit limit of $250, initial available credit will
be only about $209.
•Annual Fee: $20
for this credit card offer? •Account Set-up Fee: $20 (one-time fee)
•Participation Fee: $12 annually ($1 per month)
•Additional Card Fee: $5 annually (if applicable)
14.99% 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 this a variable-rate APR •
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
or a fixed-rate APR? •
more than $1000
Over-the-limit: $29
• Returned Payment: $35
Variable-rate APR * 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

24. Watch out for “Teaser rates”- designed to get you to apply, then rates increase, review other features before applying
Introductory Rate Interest Rates and Interest Charges
Annual Percentage 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your
•Introductory rate- APR that Rate (APR) for
Purchases
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.
may be charged after a credit APR for Balance
Transfers
15.99%
•This APR will vary with the market based on the Prime Rate
APR for Cash 21.99%
card is opened Advances
Penalty APR and
•This APR will vary with the market based on the Prime Rate
28.99%
When it Applies This APR may be applied to your account if you:
•Will have a different APR 1.Make a late payment;
2.Go over your credit limit;
3.Make a payment that is returned; or
(usually higher) after the 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
introductory period ends
reasons, the Penalty APR will apply until you make six consecutive minimum payments
when due.
How to Avoid Paying Your due date is at least 25 days after the close of each billing cycle. We will not charge
Interest on you any interest on purchases if you pay your entire balance by the due date each
•Not all credit cards have an Purchases
Minimum Interest
month.
If you are charged interest, the charge will be no less than $1.50.
Charge
introductory rate For Credit Card Tips
from the Federal
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
Reserve Board
Fees
Set-up and NOTICE: Some of these set-up and maintenance fees will be assessed before you begin
What is the introductory rate for Maintenance Fees 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.
this credit card offer? •Annual Fee: $20
•Account Set-up Fee: $20 (one-time fee)
The introductory rate Transaction Fees
•Participation Fee: $12 annually ($1 per month)
•Additional Card Fee: $5 annually (if applicable)
• Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is
depends on the •
greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever
creditworthiness of the Penalty Fees
•
•
is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is
applicant, but it will be •
more than $1000
Over-the-limit: $29
12.99%, 13.99%, or 14.99% • 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

25. Interest Rates and Interest Charges
Annual Percentage 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your
Rate (APR) for creditworthiness.
APR for Balance Transfers & Purchases
APR for Balance
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.
15.99%
Cash Advances Transfers
APR for Cash
Advances
•This APR will vary with the market based on the Prime Rate
21.99%
•This APR will vary with the market based on the Prime Rate
•Balance transfer - act of Penalty APR and
When it Applies
28.99%
This APR may be applied to your account if you:
1.Make a late payment;
transferring debt from one 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.
credit card to another 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 Your due date is at least 25 days after the close of each billing cycle. We will not charge
Interest on you any interest on purchases if you pay your entire balance by the due date each
Purchases month.
•Cash advance includes Minimum Interest
Charge
For Credit Card Tips
If you are charged interest, the charge will be no less than $1.50.
To learn more about factors to consider when applying for or using a credit card, visit the
withdrawing cash from an from the Federal
Reserve Board
website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
Fees
ATM using a credit card 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)
•Balance transfer and cash •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
advance fees may also apply •
greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever
is greater
(even if the APR is 0%) Penalty Fees
•
•
Foreign Transaction: 2% of each transaction in U.S. dollars
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

26. Interest Rates and Interest Charges
Penalty APR and Annual Percentage
Rate (APR) for
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your
creditworthiness.
Purchases After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the
When it Applies APR for Balance
market based on the Prime Rate.
15.99%
Transfers •This APR will vary with the market based on the Prime Rate
Discloses the penalty APR and APR for Cash
Advances
21.99%
•This APR will vary with the market based on the Prime Rate
Penalty APR and 28.99%
the penalty terms that trigger When it Applies This APR may be applied to your account if you:
1.Make a late payment;
2.Go over your credit limit;
it to take effect 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
•Penalty APR - interest rate
when due.
How to Avoid Paying Your due date is at least 25 days after the close of each billing cycle. We will not charge
Interest on you any interest on purchases if you pay your entire balance by the due date each
Purchases month.
charged on new transactions Minimum Interest
Charge
If you are charged interest, the charge will be no less than $1.50.
if the penalty terms in the
For Credit Card Tips To learn more about factors to consider when applying for or using a credit card, visit the
from the Federal website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
Reserve Board
contract are triggered
Fees
Set-up and NOTICE: Some of these set-up and maintenance fees will be assessed before you begin
Maintenance Fees 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)
What is the Penalty APR for this 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
credit card offer? •
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
28.99% •
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

27. it Card
Cred Interest Rates and Interest Charges
Annual Percentage 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your
Rate (APR) for creditworthiness.
Purchases 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 15.99%
Transfers •This APR will vary with the market based on the Prime Rate
APR for Cash 21.99%
Advances •This APR will vary with the market based on the Prime Rate
Penalty APR and 28.99%
When it Applies This APR may be applied to your account if you:
1.Make a late payment;
How To Avoid Paying 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.
Interest on Purchases 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.
•Explains how you can avoid 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.
interest charges by paying
Minimum Interest If you are charged interest, the charge will be no less than $1.50.
Charge
For Credit Card Tips To learn more about factors to consider when applying for or using a credit card, visit the
credit card bills in full every from the Federal
Reserve Board
website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
Fees
month 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
Minimum Interest Charge •Account Set-up Fee: $20 (one-time fee)
•Participation Fee: $12 annually ($1 per month)
•Additional Card Fee: $5 annually (if applicable)
•Typically range from $0.50 •
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
to $2 per month
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

28. Credit cards may charge
Interest Rates and Interest Charges
many different types of Annual Percentage
Rate (APR) for
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your
creditworthiness.
fees
Purchases 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 15.99%
Transfers •This APR will vary with the market based on the Prime Rate
APR for Cash 21.99%
Set-up and Maintenance Advances
Penalty APR and
When it Applies
•This APR will vary with the market based on the Prime Rate
28.99%
This APR may be applied to your account if you:
Fees 1.Make a late payment;
2.Go over your credit limit;
3.Make a payment that is returned; or
•Any set-up and 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
maintenance fees for the How to Avoid Paying
Interest on
when due.
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
card Purchases
Minimum Interest
Charge
month.
If you are charged interest, the charge will be no less than $1.50.
• Annual fee- a yearly 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
fee that may be Set-up and
Maintenance Fees
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
charged for having a example, if you are assigned the minimum credit limit of $250, initial available credit will
be only about $209.
•Annual Fee: $20
credit card •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)
What is the annual fee • Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever
is greater
•
for this credit card?
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
$20 • 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

29. it Card
Cred Interest Rates and Interest Charges
Annual Percentage 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your
Rate (APR) for creditworthiness.
Purchases 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 15.99%
Transfers •This APR will vary with the market based on the Prime Rate
APR for Cash 21.99%
Advances •This APR will vary with the market based on the Prime Rate
Penalty APR and 28.99%
When it Applies This APR may be applied to your account if you:
1.Make a late payment;
2.Go over your credit limit;
Transaction Fees 3.Make a payment that is returned; or
4.Do any of the above on another account that you have with us.
•Discloses any transaction
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 Your due date is at least 25 days after the close of each billing cycle. We will not charge
fees for the card Interest on
Purchases
you any interest on purchases if you pay your entire balance by the due date each
month.
Minimum Interest If you are charged interest, the charge will be no less than $1.50.
• Balance transfer Charge
For Credit Card Tips To learn more about factors to consider when applying for or using a credit card, visit the
fees
from the Federal website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
Reserve Board
Fees
• Cash advance fees
Set-up and NOTICE: Some of these set-up and maintenance fees will be assessed before you begin
Maintenance Fees 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
• May be charged be only about $209.
•Annual Fee: $20
•Account Set-up Fee: $20 (one-time fee)
in addition to
•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
APR
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

30. Interest Rates and Interest Charges
Penalty Fees 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
•Discloses the penalty fees for APR for Balance
market based on the Prime Rate.
15.99%
Transfers •This APR will vary with the market based on the Prime Rate
the card (in addition to Penalty APR for Cash
Advances
Penalty APR and
21.99%
•This APR will vary with the market based on the Prime Rate
28.99%
APR) When it Applies This APR may be applied to your account if you:
1.Make a late payment;
2.Go over your credit limit;
• Late-payment- charged 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
when a cardholder does How to Avoid Paying
reasons, the Penalty APR will apply until you make six consecutive minimum payments
when due.
Your due date is at least 25 days after the close of each billing cycle. We will not charge
not make the minimum Interest on
Purchases
Minimum Interest
you any interest on purchases if you pay your entire balance by the due date each
month.
If you are charged interest, the charge will be no less than $1.50.
monthly payment by the Charge
For Credit Card Tips To learn more about factors to consider when applying for or using a credit card, visit the
from the Federal website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
due date Reserve Board
Fees
• Over-the-limit-charged
Set-up and NOTICE: Some of these set-up and maintenance fees will be assessed before you begin
Maintenance Fees 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
if the account balance
be only about $209.
•Annual Fee: $20
•Account Set-up Fee: $20 (one-time fee)
goes over the set credit
•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
limit
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

31. it Card
Cred Interest Rates and Interest Charges
Annual Percentage 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your
Rate (APR) for creditworthiness.
Purchases 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 15.99%
Transfers •This APR will vary with the market based on the Prime Rate
APR for Cash 21.99%
Advances •This APR will vary with the market based on the Prime Rate
Penalty APR and 28.99%
When it Applies This APR may be applied to your account if you:
1.Make a late payment;
2.Go over your credit limit;
How we calculate your 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
balance How to Avoid Paying
reasons, the Penalty APR will apply until you make six consecutive minimum payments
when due.
Your due date is at least 25 days after the close of each billing cycle. We will not charge
•Credit card companies can Interest on
Purchases
Minimum Interest
you any interest on purchases if you pay your entire balance by the due date each
month.
If you are charged interest, the charge will be no less than $1.50.
use one of several methods to Charge
For Credit Card Tips
from the Federal
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
calculate the outstanding Reserve Board
Set-up and
Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin
balance on a credit card Maintenance Fees 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)
What method is used to calculate Transaction Fees
•Participation Fee: $12 annually ($1 per month)
•Additional Card Fee: $5 annually (if applicable)
• Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is
the balance on this card? •
greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever
is greater
Average daily balance Penalty Fees
•
•
Foreign Transaction: 2% of each transaction in U.S. dollars
Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is
(including new purchases)
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

32. Interest Rates and Interest Charges
Loss of Introductory APR 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
If the card has an APR for Balance
Transfers
market based on the Prime Rate.
15.99%
•This APR will vary with the market based on the Prime Rate
introductory rate, this area APR for Cash
Advances
Penalty APR and
21.99%
•This APR will vary with the market based on the Prime Rate
28.99%
will list how the lower When it Applies This APR may be applied to your account if you:
1.Make a late payment;
2.Go over your credit limit;
introductory rate can be 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
lost How to Avoid Paying
reasons, the Penalty APR will apply until you make six consecutive minimum payments
when due.
Your due date is at least 25 days after the close of each billing cycle. We will not charge
Interest on you any interest on purchases if you pay your entire balance by the due date each
Purchases month.
How can the introductory APR be Minimum Interest
Charge
If you are charged interest, the charge will be no less than $1.50.
lost on this card? For Credit Card Tips
from the Federal
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
Reserve Board
If the cardholder is more than Set-up and
Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin
Maintenance Fees using your card and will reduce the amount of credit you initially have available. For
60 days late in paying the bill example, if you are assigned the minimum credit limit of $250, initial available credit will
be only about $209.
•Annual Fee: $20
What APR will the
•Account Set-up Fee: $20 (one-time fee)
•Participation Fee: $12 annually ($1 per month)
•Additional Card Fee: $5 annually (if applicable)
cardholder be charged if the Transaction Fees • Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is
greater (maximum fee: $100)
introductory rate is lost?
• 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
The Penalty APR of 28.99% •
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

33. 1.4.1.G1
ard rd
die C a
eCrt dit C
Credit Card Chaos
Cr
Activity Directions:
1.Two credit card terms will be provided
2.Identify which term is true on your credit card
offer
3.Move to the correct side of the room
indicated by the arrow on the slide
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

34. 1.4.1.G1
ard rd
die C a
eCrt dit C
Credit Card Chaos
Cr
Does your credit card offer have a:
Fixed-rate Variable-rate
APR for OR APR for
Purchases Purchases
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

35. 1.4.1.G1
ard rd
die C a
eCrt dit C
Credit Card Chaos
Cr
Does your credit card offer have a:
APR for APR for
Purchases
greater than or
OR Purchases
less than 15%
equal to 15%
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

36. 1.4.1.G1
ard rd
die C a
eCrt dit C
Credit Card Chaos
Cr
Does your credit card offer have an
Introductory Rate?
No
Introductory
Introductory
Rate
OR Rate
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

37. 1.4.1.G1
ard rd
die C a
eCrt dit C
Credit Card Chaos
Cr
Does your credit card offer have a
Minimum Interest Charge?
Minimum No Minimum
Interest Interest
Charge OR Charge
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

38. 1.4.1.G1
ard rd
die C a
eCrt dit C
Credit Card Chaos
Cr
Does your credit card offer have an
Annual Fee?
Annual No Annual
Fee Fee
OR
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

39. 1.4.1.G1
ard rd
die C a
eCrt dit C
Credit Card Chaos
Cr
Does your credit card offer have a
Late Payment Fee?
Late No Late
Payment Payment
Fee OR Fee
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

40. 1.4.1.G1
ard rd
die C a
eCrt dit C
Credit Card Chaos
Cr
Does your credit card offer have a
Balance Transfer Fee?
Balance No Balance
Transfer Transfer
Fee OR Fee
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

41. 1.4.1.G1
ard rd
die C a
eCrt dit C
Credit Card Benefits
Cr
• Make sure to
know all terms
and conditions
• May charge fees
or higher interest
rates
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

42. 1.4.1.G1
Cr
ard rd
die C a
eCrt dit C
How do I obtain a credit
card?
Credit card companies send pre-approved credit
card applications in the mail when the individual
has passed their initial credit check
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

43. 1.4.1.G1
Cr
ard rd
die C a
eCrt dit C
What is a Credit Card
Statement?
• Outline important information about the card
• 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.
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – 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

44. Andrew’s Credit Card Statement
Summary of Account Activity
Previous Balance 535.07 New Balance
Payment Information
2 $1784.53
Payments -450.00 Minimum Payment Due $53.00
Purchases +529.57 Payment Due Date 4/20/12
3
Balance Transfers +785.00 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
1
Cash Advances +318.00
rate of 28.99%
Past Due Amount +0.00
4
Minimum Payment Warning: If you make only the minimum payment each period, you will
Fees Charged +69.45 pay more in interest and it will take you longer to pay off your balance. For example…
Interest Charged +10.89 If you make no
New Balance $1,784.53 You will pay off the And you will end up
additional charges using
balance shown on this paying an estimated
this card and each
statement in about… total of…
Credit Limit $2,000.00 month you pay…
Only the minimum
Summary of Account Activity
Available credit $215.47
10 years $3,284
Statement closing date 3/22/2012 payment
Summary of Account
Days in billing cycle 30 $62 3 years $2,232
Previous Balance Important Changes to Your Account Terms 535.07
Notice of Changes to Your Interest Rates
Payments 5 The following is a summary of changes that are being made to your6
-450.00
Activity
You have triggered the Penalty APR of 28.99%. This change will
impact your account as follows: account terms. For more detailed information, please refer to the
Purchases
Transactions made on or after 4/9/12: As of 5/10/12, the Penalty +529.57
booklet enclosed with this statement. These changes will impact
APR will apply to these transactions. We may keep the APR at this
your account as follows:
Balance Transfers Transactions made on or after+785.00
•Overview of credit card
level indefinitely. 4/9/12: As of 5/10/12, APR for
Transactions made before 4/9/12: Current rates will continue toPurchases will increase to 16.99%.
Cash Advances
apply to these transactions. If you become more than 60 days late on +318.00
Transactions made before 4/9/12: Current APRs will continue to
your account, the Penalty APR will apply to hose transactions as well.
apply to these transactions.
Past Due Amount +0.00
Trans Fees Charged
Transactions
7 +69.45 Amount
Reference Number Post Date Description of Transaction or Credit
Date
XXXX1 2/22 Interest Charged
2/23 Store #1 +10.89 $529.57
XXXX2
XXXX3
2/25
2/26
New Balance Advance
2/26
2/26
Payment
Cash
$1,784.53 $450.00 -
$318.00
XXXX4 3/15 3/17 Balance Transfer $785.00
Fees
XXXX5 2/23 Credit Limit Late Fee
2/23 $2,000.00 $35.00
XXXX6
XXXX7
2/27
2/28
Available credit Transfer Fee
2/27
2/28
Balance
Cash Advance Fee $215.47
8
$23.55
$10.90
Statement closing date
Total Fees for this Period
3/22/2012 $69.45
Interest Charged
Interest Charge on Purchases $6.31
Days in billing cycle Interest Charge on Cash Advances
Total Interest for this Period 30 $4.58
$10.89
How much did Andrew charge in Total fees charged in 2012
2012 Totals Year-to-Date
$90.14
9
Total interest charged in 2012 $18.27
new purchases during this credit Interest Charge Calculation
card billing cycle?
Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge
Purchases 14.99% $512.14 $6.31
Cash Advances
Balance Transfers
21.99%
0.00%
10 $253.50
$637.50
$4.58
$0.00
$529.57

45. Andrew’s Credit Card Statement
Summary of Account Activity
Previous Balance 535.07 New Balance
Payment Information
2 $1784.53
Payment Information
Payments -450.00 Minimum Payment Due $53.00
Purchases +529.57 Payment Due Date 4/20/12
3
Balance Transfers +785.00 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
•Total new balance 1
Cash Advances +318.00
rate of 28.99%
Past Due Amount +0.00
4
Minimum Payment Warning: If you make only the minimum payment each period, you will
Fees Charged +69.45 pay more in interest and it will take you longer to pay off your balance. For example…
Interest Charged +10.89 If you make no
•Minimum payment amount New Balance $1,784.53 You will pay off the And you will end up
additional charges using
balance shown on this paying an estimated
this card and each
statement in about… total of…
Credit Limit $2,000.00 month you pay…
Available credit $215.47Payment Information years
•Date payment is due
Only the minimum
10 $3,284
Statement closing date 3/22/2012 payment
New Balance
Days in billing cycle 30 $62 3 years $1784.53
$2,232
Minimum Payment Due $53.00
•Payment due dates must be Notice of Changes to Your Interest Rates
You Payment Due Date28.99%. This change will
have triggered the Penalty APR of
impact your account as follows:
Late Payment Warning: If the Penalty
5 ImportantisChanges to changesAccount4/20/12your6
The following a summary of
Your Terms
that are being made to
account terms. For more detailed information, please refer to the
Transactions made on or after 4/9/12: As of 5/10/12, we do not receive your minimum payment impact
booklet enclosed with this statement. These changes will by
consistent month to month the date listed above, you may have to your account made feeafter 4/9/12: As ofAPR’sAPR for
APR will apply to these transactions. We may keep the APR at this
level indefinitely.
apply to these transactions. If you become more than 60 days late on
pay a $35 on or and your 5/10/12, may
Transactions
as follows:
be increased up to the Penalty rate of 28.99% made before 16.99%. Current APRs will continue to
Transactions made before 4/9/12: Current rates will continue to Purchases will increase to
Transactions 4/9/12:
•Monthly statements must your account, the Penalty APR will apply to hose transactions asyou make only the minimum payment
Minimum Payment Warning: If well.
Transactions
apply to these transactions.
each period, you will pay more in interest and it will take you longer to
7
be sent at least 21 days pay off your balance. For example…
Trans
Reference Number Post Date Description of Transaction or Credit Amount
Date
XXXX1 2/22 2/23 Store #1 $529.57
XXXX2 If you make no
2/25 2/26 Payment $450.00 -
before payment is due XXXX3
XXXX4
2/26
3/15
2/26
additional charges
3/17
using this card
You will pay off the
Cash Advance
Balance Transfer
balance shown on
Fees
And you will end
up paying an
$318.00
$785.00
XXXX5 2/23 2/23 this statement in
Late Fee estimated total $35.00
XXXX6 and each month
2/27 2/27 Balance Transfer Fee $23.55
XXXX7
you pay… 2/28
2/28 about…
Cash Advance Fee
Total Fees for this Period
8of… $10.90
$69.45
Only the Interest Charged
minimum 10 years
Interest Charge on Purchases
Interest Charge on Cash Advances
$3,284 $6.31
$4.58
payment
What is Andrew’s minimum
Total Interest for this Period $10.89
$62 3 years
2012 Totals Year-to-Date $2,232 9
payment due for this billing cycle?
Total fees charged in 2012 $90.14
Total interest charged in 2012 $18.27
Interest Charge Calculation
Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge
$53.00 Purchases
Cash Advances
Balance Transfers
14.99%
21.99%
0.00%
10
$512.14
$253.50
$637.50
$6.31
$4.58
$0.00

46. Late Payment Warning Andrew’s Credit Card Statement
Summary of Account Activity Payment Information
2
•What will happen if a
Previous Balance 535.07 New Balance $1784.53
Payments -450.00 Minimum Payment Due $53.00
Purchases +529.57 Payment Due Date 4/20/12
3
Balance Transfers +785.00 Late Payment Warning: If we do not receive your minimum payment by the date listed
payment is late- usually
above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty
1
Cash Advances +318.00
rate of 28.99%
Past Due Amount +0.00
4
Minimum Payment Warning: If you make only the minimum payment each period, you will
Fees Charged +69.45 pay more in interest and it will take you longer to pay off your balance. For example…
additional fees and a higher
Interest Charged +10.89 If you make no
New Balance $1,784.53 You will pay off the And you will end up
additional charges using
balance shown on this paying an estimated
this card and each
statement in about… total of…
Credit Limit $2,000.00 month you pay…
Payment Information years
interest rate Available credit
Statement closing date
New Balance
Days in billing cycle
$215.47
3/22/2012
30
Only the minimum
10
payment
$62 3 years
$3,284
$1784.53
$2,232
Minimum Payment Due $53.00
Notice of Changes to Your Interest Rates
You Payment Due Date28.99%. This change will
have triggered the Penalty APR of
impact your account as follows:
5 ImportantisChanges to changesAccount4/20/12your6
The following a summary of
Your Terms
that are being made to
account terms. For more detailed information, please refer to the
Transactions made on or after 4/9/12: As of 5/10/12, we do not receive your minimum payment impact
Late Payment Warning: If the Penalty booklet enclosed with this statement. These changes will by
Minimum Payment Warning the date listed above, you may have to your account made feeafter 4/9/12: As ofAPR’sAPR for
APR will apply to these transactions. We may keep the APR at this
level indefinitely.
pay a $35 on or and your 5/10/12, may
Transactions
as follows:
be increased up to the Penalty rate of 28.99% made before 16.99%. Current APRs will continue to
Transactions made before 4/9/12: Current rates will continue to Purchases will increase to
•Estimate of how long it can apply to these transactions. If you become more than 60 days late on Transactions
your account, the Penalty APR will apply to hose transactions asyou make only the minimum payment
Minimum Payment Warning: If well.
4/9/12:
apply to these transactions.
each period, you will pay more in interest and it will take you longer to
Transactions
7
take to pay off balance if pay off your balance. For example…
Reference Number
XXXX1 2/22
Trans
Date
Post Date
2/23
Description of Transaction or Credit
Store #1
Amount
$529.57
only the minimum payment If you make no
XXXX2 2/25 2/26 Payment $450.00 -
XXXX3 2/26 2/26 You will pay off the
Cash Advance And you will end $318.00
XXXX4 additional charges
3/15 3/17 Balance Transfer $785.00
balance shown on up paying an
is made
Fees
using this card
XXXX5 2/23 2/23 this statement in
Late Fee estimated total $35.00
XXXX6 and each month
2/27 2/27 Balance Transfer Fee $23.55
XXXX7
you pay… 2/28
2/28 about…
Cash Advance Fee
Total Fees for this Period
8of… $10.90
$69.45
Only the Interest Charged
minimum 10 years
Interest Charge on Purchases
$3,284 $6.31
How long will it take Andrew to payment
Interest Charge on Cash Advances
Total Interest for this Period
$4.58
$10.89
$62 3 years $2,232 9
pay off the balance of his credit Total fees charged in 2012
Total interest charged in 2012
2012 Totals Year-to-Date
$90.14
$18.27
card if he only pays the minimum Interest Charge Calculation
payment?
Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge
Purchases 14.99% $512.14 $6.31
Cash Advances
Balance Transfers
21.99%
0.00%
10 $253.50
$637.50
$4.58
$0.00
10 years

47. Andrew’s Credit Card Statement
Summary of Account Activity
Previous Balance 535.07 New Balance
Payment Information
2 $1784.53
Payments -450.00 Minimum Payment Due $53.00
Purchases +529.57 Payment Due Date 4/20/12
Balance Transfers +785.00
3 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
1
Cash Advances +318.00
Notice of Changes to Your
rate of 28.99%
Past Due Amount +0.00
Fees Charged
Interest Charged
+69.45
+10.89
4 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
You will pay off the And you will end up
Interest Rates
New Balance $1,784.53 additional charges using
balance shown on this paying an estimated
this card and each
statement in about… total of…
Credit Limit $2,000.00 month you pay…
Available credit $215.47 Only the minimum
•If the Penalty APR is
10 years $3,284
Statement closing date 3/22/2012 payment
Days in billing cycle 30 $62 3 years $2,232
5 Important Changes to Your Account Terms
Notice of Changes to Your Interest Rates
6
triggered, cardholder must You have triggered the Penalty APR of 28.99%. This change will
impact your account as follows:
Notice of Changes to Your Interest Rates
Transactions made on or after 4/9/12: As of 5/10/12, the Penalty
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
be notified that their rates
APR will apply to these transactions. We may keep the APR at this your account as follows:
level indefinitely. Transactions made on or after 4/9/12: As of 5/10/12, APR for
You have triggered the Penalty APR of 28.99%. This change will impact
Transactions made before 4/9/12: Current rates will continue to
apply to these transactions. If you become more than 60 days late on
Purchases will increase to 16.99%.
Transactions made before 4/9/12: Current APRs will continue to
your account as follows:
will be increasing
your account, the Penalty APR will apply to hose transactions as well. apply to these transactions.
Transactions
7
Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR
Trans
Reference Number Post Date Description of Transaction or Credit Amount
will apply to these
Date transactions. We may keep the APR at this level
XXXX1 2/22 2/23 Store #1 $529.57
indefinitely. 2/25
XXXX2 2/26 Payment $450.00 -
XXXX3
Transactions 2/26 before 4/9/12: Transfer
made 2/26
Cash Advance $318.00
XXXX4 3/15 3/17 Balance Current rates will continue to apply $785.00
to these transactions. If you become Feesmore than 60 days late on your
XXXX5 2/23 2/23 Late Fee $35.00
account, the Penalty APR will apply to hose transactions as well.
Has Andrew triggered XXXX6 2/27 2/27 Balance Transfer Fee $23.55
XXXX7 2/28 2/28 Cash Advance Fee
Total Fees for this Period
8 $10.90
$69.45
the Penalty APR? Interest Charged
Interest Charge on Purchases
Interest Charge on Cash Advances
$6.31
$4.58
Yes, he will pay 28.99% on all
Total Interest for this Period $10.89
2012 Totals Year-to-Date 9
transactions made after 4/9/12.
Total fees charged in 2012 $90.14
Total interest charged in 2012 $18.27
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
Balance Transfers
21.99%
0.00%
10 $253.50
$637.50
$4.58
$0.00

48. Important Changes to Your Summary of Account Activity
Previous Balance 535.07
Andrew’s Credit Card Statement
New Balance
Payment Information
2 $1784.53
Account Terms Payments
Purchases
-450.00
+529.57
Minimum Payment Due
Payment Due Date
$53.00
4/20/12
3
Balance Transfers +785.00 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
•Must be notified of any 1
Cash Advances +318.00
rate of 28.99%
Past Due Amount +0.00
4
Minimum Payment Warning: If you make only the minimum payment each period, you will
Fees Charged +69.45 pay more in interest and it will take you longer to pay off your balance. For example…
Interest Charged +10.89
significant changes at least
If you make no
New Balance $1,784.53 You will pay off the And you will end up
additional charges using
balance shown on this paying an estimated
this card and each
statement in about… total of…
Credit Limit $2,000.00 month you pay…
45 days before the changes
Available credit $215.47 Only the minimum
10 years $3,284
Statement closing date 3/22/2012 payment
Days in billing cycle 30 $62 3 years $2,232
take effect 5 Important Changes to Your Account Terms
Notice of Changes to Your Interest Rates
You have triggered the Penalty APR of 28.99%. This change will
Important Changes to Your Account Terms
impact your account as follows:
The following is a summary of changes that are being made to your
account terms. For more detailed information, please refer to the
6
•Any changes can only apply
Transactions made on or after 4/9/12: As of 5/10/12, the Penalty booklet enclosed with this statement. These changes will impact
APR will apply to these transactions. We may keep the APR at this your account as follows:
The following is a summary of changes that are being made to your
level indefinitely. Transactions made on or after 4/9/12: As of 5/10/12, APR for
Transactions made before 4/9/12: Current rates will continue to Purchases will increase to 16.99%.
account terms. For more detailed information, please refer to the
to new charges
apply to these transactions. If you become more than 60 days late on Transactions made before 4/9/12: Current APRs will continue to
your account, the Penalty APR will apply to hose transactions as well. apply to these transactions.
booklet enclosed with this statement. These changes will impact your
account as follows:
Transactions
7
•Account can be closed Reference Number
XXXX1
Trans
2/22
Post Date
Date
Description of Transaction or Credit Amount
Transactions made on 2/23 after 4/9/12: As of 5/10/12, APR for Purchases -
or Store #1 $529.57
before the changes go into
XXXX2 2/25 2/26 Payment $450.00
will increase to 16.99%.
XXXX3 2/26 2/26 Cash Advance $318.00
XXXX4 3/15 3/17 Balance Transfer $785.00
Transactions made before 4/9/12: Current APRs will continue to apply to
Fees
effect these transactions. 2/23
XXXX5
XXXX6
XXXX7
2/23
2/27 2/27
2/28
Late Fee
Balance Transfer Fee
2/28
$35.00
$23.55
Cash Advance Fee 8 $10.90
Total Fees for this Period $69.45
Other than implementation of
Interest Charged
Interest Charge on Purchases $6.31
Interest Charge on Cash Advances $4.58
the Penalty APR, will there be
Total Interest for this Period $10.89
2012 Totals Year-to-Date
9
any other changes to
Total fees charged in 2012 $90.14
Total interest charged in 2012 $18.27
Andrew’s account terms? Type of Balance
Purchases 14.99%
Interest Charge Calculation
Annual Percentage Rate (APR) Balance Subject to Interest Rate
$512.14
Interest Charge
$6.31
Yes, his APR for Purchases is Cash Advances
Balance Transfers
21.99%
0.00%
10 $253.50
$637.50
$4.58
$0.00
increasing to 16.99%.

49. Andrew’s Credit Card Statement
Summary of Account Activity Payment Information
2
Transactions
Previous Balance 535.07 New Balance $1784.53
Payments -450.00 Minimum Payment Due $53.00
Purchases +529.57 Payment Due Date 4/20/12
3
Balance Transfers +785.00 Late Payment Warning: If we do not receive your minimum payment by the date listed
•List of all transactions since
above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty
1
Cash Advances +318.00
rate of 28.99%
Past Due Amount +0.00
4
Minimum Payment Warning: If you make only the minimum payment each period, you will
Fees Charged +69.45 pay more in interest and it will take you longer to pay off your balance. For example…
Transactions
the last statement
Interest Charged +10.89 If you make no
New Balance $1,784.53 You will pay off the And you will end up
Reference Trans Post additional charges using
Description of on this
balance shown paying an estimated
this card and each
statement in about… Amount
total of…
Number
Credit Limit
Date $215.47Date OnlyTransaction or Credit
$2,000.00 month you pay…
•Should be reviewed for Available credit
XXXX1
Statement closing date
XXXX2
Days in billing cycle
2/223/22/2012
2/25
2/23
2/26
30
the minimum
Store #1
payment
$62
Payment
10 years
3 years
$529.57
$3,284
$2,232
$450.00 -
errors Notice of Changes to2/26Interest Rates
XXXX3 Your 2/26
You have triggered the Penalty APR of 28.99%. This change will
XXXX4 3/15
impact your account as follows: 3/17
5 Importantis a summary of changes that are being made to your6
Cash Advance Changes to Your Account Terms
The following
$318.00
Balanceaccount terms. For more detailed information, please refer to the
Transfer $785.00
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
Fees account as follows: statement. These changes will impact
booklet enclosed with this
your
XXXX5
level indefinitely. 2/23 2/23
Transactions made before 4/9/12: Current rates will continue to
Late Fee Transactions made on or after 4/9/12: As of 5/10/12, APR$35.00
for
Purchases will increase to 16.99%.
apply to these transactions. 2/27
XXXX6 2/27 BalanceTransactions made before 4/9/12: Current APRs will continue to
If you become more than 60 days late on Transfer Fee $23.55
your account, the Penalty APR will apply to hose transactions as well. apply to these transactions.
XXXX7 2/28 2/28 Cash Advance Fee $10.90
Total Fees for7
Fees and Interest Charged
Transactions
Trans
this $69.45
Reference Number Post Date Description of Transaction or Credit Amount
Date Period
XXXX1 2/22 2/23 Store #1 $529.57
•Fees and interest charges XXXX2
XXXX3
XXXX4
2/25
2/26
3/15
2/26
2/26
3/17
Interest Charged
Payment
Cash Advance Charge on
Interest
Balance Transfer
$450.00 -
$6.31
$318.00
$785.00
Purchases
must be listed separately XXXX5
XXXX6
2/23
2/27
2/23
2/27
Late Fee
Fees
Interest Charge on Cash
Balance Transfer Fee
$4.58
$35.00
$23.55
XXXX7 2/28 2/28 Advances
Cash Advance Fee
Total Fees for this Period for this
8 $10.90
Total Interest $10.89$69.45
Interest Charged
Period
Interest Charge on Purchases $6.31
Interest Charge on Cash Advances $4.58
Total Interest for this Period $10.89
2012 Totals Year-to-Date
Did Andrew pay a late fee? Total fees charged in 2012
Total fees charged in 2012
2012 Totals Year-to-Date
$90.14
9
$90.14
Total interestincharged in 2012
Total interest charged 2012 $18.27
$18.27
Yes, he paid $35.00 for a late Type of Balance
Interest Charge Calculation
Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge
fee.
Purchases 14.99% $512.14 $6.31
Cash Advances
Balance Transfers
21.99%
0.00%
10 $253.50
$637.50
$4.58
$0.00

50. Andrew’s Credit Card Statement
Year-to-Date Totals Summary of Account Activity
Previous Balance 535.07
Transactions
New Balance
Payment Information
2 $1784.53
•Total amount paid in fees
Payments -450.00 Minimum Payment Due $53.00
Reference
Purchases Trans +529.57 Post Payment Due Date Description of 4/20/12
Amount
3
Balance Transfers +785.00 Late Payment Warning: If we do not receive your minimum payment by the date listed
Number Date Date Transaction or Credit
above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty
1
Cash Advances +318.00
and interest charges for the
rate of 28.99%
XXXX1
Past Due Amount 2/22 2/23
+0.00 Store #1 $529.57
4 Payment
Minimum Payment Warning: If you make only the minimum payment each period, you will
Fees Charged +69.45 pay more in interest and it will take you longer to pay off your balance. For example…
XXXX2
Interest Charged 2/25 2/26
+10.89 If you make no
$450.00 -
You will pay off the And you will end up
current year XXXX3 2/26 2/26 additional charges using
Cash and each
Advance balance shown on this paying an$318.00
New Balance $1,784.53
estimated
this card
XXXX4
Credit Limit 3/15 $2,000.00 3/17 Balance Transfer
month you pay…
statement in about…
$785.00
total of…
Available credit $215.47 Only the minimum
Statement closing date 3/22/2012 Fees
payment
10 years $3,284
XXXX5 2/23 2/23 Late Fee$62 3 years $2,232
$35.00
What is the total amount of
Days in billing cycle 30
XXXX6of Changes to Your Interest Rates Balance TransferChanges to Your Account Terms
2/27 2/27 Important Fee $23.55
XXXX7triggered the Penalty APR of 28.99%. This change will 5Advance Fee summary of changes that areplease madeto the
Notice
6
interest Andrew has paid in the 2/28 2/28 Cash $10.90
You have The following is a being to your
impact your account as follows: account terms. For more detailed information, refer
Total Fees for thiswith this statement. These changes will impact
Transactions made on or after 4/9/12: As of 5/10/12, the Penalty booklet enclosed $69.45
year 2012?
APR will apply to these transactions. We may keep the APR at this your account as follows:
level indefinitely. Period Transactions made on or after 4/9/12: As of 5/10/12, APR for
Transactions made before 4/9/12: Current rates will continue to Purchases will increase to 16.99%.
apply to these transactions. If you become more than 60Interest Charged made before 4/9/12: Current APRs will continue to
days late on Transactions
your account, the Penalty APR will apply to hose transactions as well.
$18.27
apply to these transactions.
Interest Charge on $6.31
Trans
Transactions
Purchases 7
Reference Number Post Date Interest Charge on Cash
Description of Transaction or Credit Amount
$4.58
Date
XXXX1 2/22 2/23 Store #1 $529.57
XXXX2 2/25 2/26
Advances
Payment $450.00 -
XXXX3 2/26 2/26 Total Interest for this
Cash Advance $10.89
$318.00
XXXX4 3/15 3/17
Interest Charge Calculation
Balance Transfer $785.00
Period Fees
XXXX5 2/23 2/23 Late Fee $35.00
XXXX6 2/27 2/27 Balance Transfer Fee $23.55
2012 Totals Year-to-Date 8
•Summary of the different XXXX7 2/28 2/28
Total fees charged in 2012
Cash Advance Fee
Total Fees for this Period $90.14
$10.90
$69.45
Total interest chargedInterest Charged
in 2012 $18.27
types of transactions
Interest Charge on Purchases $6.31
Interest Charge on Cash Advances $4.58
Total Interest for this Period $10.89
2012 Totals Year-to-Date
Interest Charge Calculation
Total fees charged in 2012 $90.14
9
Total interest charged in 2012 $18.27
Type of Annual Percentage Balance Subject to Interest
Why is it important to Balance Rate (APR) Charge Calculation Rate
Interest Interest Charge
Type of Balance Annual Percentage Rate (APR) Balance Subject to Interest Rate Interest Charge
understand how to read a credit Purchases
Purchases
Cash Transfers
Balance
Advances
Cash Advances
14.99%
14.99%
21.99% 10
21.99%
0.00%
$512.14
$512.14
$253.50
$253.50
$637.50
$6.31
$6.31
$4.58
$4.58
$0.00
card statement? Balance
Transfers
0.00% $637.50 $0.00

51. 1.4.1.G1
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Cardholder Protections &
Rights
Truth in Lending Act
Protects from unauthorized credit card charges
Cardholder liability is Cardholder has no liability
limited to $50.00
MUST write a letter within 60 days
of the bill containing the error
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – Slide 51
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

52. 1.4.1.G1
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Cardholder Protections &
Rights
2009 CARD Act
Provides various
protections for
cardholders
Obtain a co- Show proof of
Must be 21 signer sufficient
years or older A co-signer is equally income to make
to receive a responsible for the payments
credit card loan
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – Slide 52
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

53. 1.4.1.G1
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Cardholder Protections &
Rights
2009 CARD Act- protection from increasing
interest rates
Interest rates on existing balances generally can’t be
raised unless a cardholder is 60 days or more past due
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – Slide 53
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

54. 1.4.1.G1
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Cardholder Protections &
Rights
2009 CARD Act- protection from over-the-
limit fees
Cardholders have to “opt-in” to allowing
transactions that take them over their credit limit
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – Slide 54
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

55. 1.4.1.G1
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Cardholder Protection &
Rights
Fair Credit Billing Act
Protects from broken, undelivered, unsatisfied
purchases made with credit cards
• Allows the consumer to not pay for a product or
service for which the consumer has a complaint
• Any amount of money above the $50.00 fee that
consumers are responsible for will be issued back
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – Slide 55
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

56. 1.4.1.G1
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Credit Card
Safety Tips
Do not leave cards Close unwanted
Sign card with a lying around, and accounts by writing
signature and report lost/stolen and phone then cut
“Please see I.D.” cards promptly up the card
Do not give out Keep a list of all cards, Shred all pre-
account numbers account numbers, and approved credit card
unless making a phone lists separate offers, applications,
purchase from cards or solicitations
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – Slide 56
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

57. 1.4.1.G1
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Online Shopping Safety Tips
Cr
1. Use a temporary credit card number
– This is a one-time use only number
– A set amount will be charged to your credit card
– Then a number will be given to you to do your
shopping
2. Use a credit card rather than a debit card
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – Slide 57
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

58. 1.4.1.G1
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Summary
Cr
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
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – Slide 58
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

59. 1.4.1.G1
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Summary
Cr
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
© Family Economics & Financial Education – Updated May 2011 – Credit Unit – Understanding a Credit Card – Slide 59
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