1. 1 Credit Card Basics What you need to know before signing up…

2. 2 History of Credit Cards Credits Cards started as department store credit cards – Their use grew because customers spent 112% more using a credit card than if cash was used! (that still holds true today)

3. 3 Credit Cards Terms and Conditions Annual Percentage Rate (APR): interest rate you pay on the credit card as a yearly rate. Variable Rate: interest rate you pay that changes according to a set formula: such as Prime Rate +3. Fixed Interest Rate: interest rate you pay that doesnt change, without a 15 day notice from the credit card company.

4. 4 Credit Cards more Terms and Conditions Grace Period: period in which finance charges do not accrue if you do not carry a balance. Payment Due Date: last day that payment is due without penalty. Minimum Monthly Payment: lowest amount that you can pay toward your credit card balance, each month.

5. 5 Credit Cards and more Terms and Conditions Purchase APR Rate: interest rate that you pay on purchases made using your credit card, if you dont pay the balance in full. Cash advance APR: interest rate charged on getting cash from your credit card. Interest is started immediately on the cash advance. Balance Transfer: ability to transfer the balance from one credit card to another.

6. 6 Credit Card Typical Offers Low Introductory Rates: a low or 0% rate on your credit card balance for a limited time. No Annual Fee: Credit cards that you dont have to pay a fee to use; caution, can require a minimum number of purchases or pay an inactivity fee. Rewards Cards: purchases you make earn you rewards for using the credit card [such as, airline travel, store credit certificates, even cash back.]

7. 7 Credit Card Summary Know what you are signing up for as credit card companies are in the business of making money by lending you money.