1. Credit Card Costs

2.  Identify important information about credit cards terms and conditions.  Calculate the new balance on a credit card.  Verify transactions on credit card statements.  Calculate the cost of using a credit card.

3.  Each month the credit card company provides a statement to the credit card user that details:  Purchases  Fees  Payments and other credits  Total amount owed (including interest)

4.  Something you should read BEFORE you sign up for a credit card!  They outline the costs associated with using the credit card—they usually have a disclosure box (example on p. 129).

5.  YES!  If you pay your balance (how much you owe) in full by the due date you don’t have to pay interest! This is called the “grace period.”  However, other fees may apply to things such as cash advances, balance transfers, etc.  Example 1, p. 130  Check your understanding A

6.  Transactions- things such as purchases, payments made, and fees.  Credits- when an amount is subtracted from the total balance due. Ex: You purchased something with your card and then returned it back to the store OR a payment made.  Cash advance limits  Finance charges (also known as interest)  Statement closing date-last date on which transactions were posted.  APR  Minimum payment due  New balance = previous balance + (purchases/fees/ finance charges) – (payments/credits)  Example 2, p. 132  Check your understanding C

7.  Either by mail or online  Most companies have an online website available 24 hours a day.  It’s important to check often to ensure that there are no UNAUTHORIZED CHARGES on your account.  Example 3, p. 133  Check your understanding E

8.  WAY TOO MUCH!!!  Example 4,. 133  Check your understanding G & H

9.  P. 134-136, 12-22