Presentation on theme: "Credit Card Costs. Identify important information about credit cards terms and conditions. Calculate the new balance on a credit card. Verify transactions."— Presentation transcript:
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.
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)
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).
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
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
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
WAY TOO MUCH!!! Example 4,. 133 Check your understanding G & H