4.4B Credit Cards.

Slides:

Advertisements

Similar presentations

Credit Cards Avoiding the Credit Trap. Credit Cards Credit cards are a good way to build credit, if used wisely Receive monthly statements. Can be mailed.

Advertisements

Financial Algebra © Cengage/South-Western Slide CREDIT CARDS Become familiar with the basic vocabulary of credit cards. Compute an average daily.

Ch. 6.1 Credit Cards: Plastic Money

 dvice/glossary.htm dvice/glossary.htm.

CREDIT VOCABULARY.  Credit = a promise to pay in the future for an item you purchase today.  Finance charge = the cost of using credit. This is usually.

Credit Cards. What are the benefits? No need to carry large sums of cash Helps credit rating Have access to a written record of all purchases Rewards.

Chapter 18 Responsibilities and Costs of Credit

Financial Algebra © Cengage/South-Western Slide 1 CONSUMER CREDIT 4-1Introduction to Consumer Credit 4-2Loans 4-3Loan Calculations and Regression 4-4Credit.

© South-Western Educational Publishing Chapter 18 Responsibilities and Costs of Credit  Using Credit Responsibly  Analyzing and Computing Credit Costs.

Getting a credit card. © Family Economics & Financial Education –Updated April 2009– Credit Unit – Understanding a Credit Card Funded by a grant from.

Chapter 4 Going Into Debt. Section 1 Americans and Credit.

Credit Cards Know what you’re getting into…. Pros  Convenient  Easy to Track  Consumer Protection  Special Services  Rewards (Points/Miles/Credits.

Introduction To Credit Personal Finance. What is Credit? Money borrowed to buy something now, with the agreement to pay later.

Staff Muscling up Smarten up your credit card by using these THREE rules.

Family Economics & Financial Education G1 © Family Economics & Financial Education – Revised October 2004 – Credit Unit – Selecting a Credit Card.

Personal Financial Management

Using Credit Responsibility

Take Charge of Credit Cards

Installment Buying, Rule of 78, and Revolving Charge Credit Cards

Take Charge of Credit Cards

Financing Unit 6.

Who cares….is there really that much to know about them???

Take Charge of Credit Cards

Credit Cards - Understanding the credit card statement

4.4A Credit Cards.

Chapter 11 Consumer Mathematics Active Learning Lecture Slides

The Three “C’s” of Credit

Rate of Return A percentage amount of return on an investment

Chapter 7 Charge Accounts and Credit Cards

4.5A Credit card statements

Credit Card Statements

Chapter 18 Responsibilities and Costs of Credit

Teens lesson eight credit cards.

Entry Task There are 20 vocabulary words on p. 200 and 201

Section 13-2 Consumer Credit.

4.1B Intro to Consumer Credit

4 CONSUMER CREDIT 4-1 Introduction to Consumer Credit 4-2 Loans

4-1 INTRODUCTION TO CONSUMER CREDIT

Understanding Plastic Cards

Avoiding the Credit Trap

Section 11.4 Installment Buying

LESSON TWO: PERSONAL SPENDING

Credit Review Fall 2014.

Sources of consumer credit

Analyzing Credit.

Warmup John’s billing cycle started on Aug 4th. His beginning balance was $ He had the following transcations: Aug 10 spent $54.96 Aug.

Exponential Functions – Personal Finance

Quiz Review What is the monthly periodic rate if a loan has an APR of 15% Barry needed to borrow $12,000 to purchase a used car. The bank said he would.

SECTION 7-3 Finance Charge: Average-Daily-Balance pp

What is a Credit Card Statement?

Credit Vs. Debit cards.

Business and Consumer Loans

SECTION 7-1 Account Statements pp

SECTION 7-4 Finance Charge: Average-Daily-Balance

SECTION 7-3 Finance Charge: Average-Daily-Balance pp

Section 10.4 Installment Buying.

Statements & Finance Charge

Take Charge of Credit Cards

Selecting a Credit Card

Take Charge of Credit © Family Economics & Financial Education – December 2005 – Get Ready to Take Charge of Your Finances – Take Charge of Credit Cards.

Chapter 7 Credit Cards.

WARMUP Daniel wanted a new flatscreen TV that cost $799. He could purchase it with 10% down and installment payments of $70 per month for 12 months.

Installment Loans Unit 4 – Day 2.

Credit Cards - Understanding the credit card statement

Debit vs. Credit.

Analyzing a Credit-Card Statement

You can explain strategies for handling credit cards responsibly.

© 2008 Pearson Addison-Wesley. All rights reserved

Presentation transcript:

4.4B Credit Cards

Vocabulary Review IMPULSE BUYING: When a consumer purchases something to which they suddenly were attracted to. CHARGE CARD: A special type of credit card that allows the cardholder to make purchases in places that accept the card. The monthly bill must be paid in full. TRUTH IN LENDING ACT: Protects you if your credit card is lost or stolen. CREDIT CARD: A plastic card that entitles its holder to make purchases and pay for them later.

Example One Credit card companies issue a monthly statement; therefore APR must be converted to a monthly percentage rate. If the APR is 27.9%, what is the monthly interest rate?

Example Two Rebecca pays a finance charge on her average daily balance of $1,441.60. Her APR is 18%. What is her finance charge for this billing cycle?

Example Three Austin pays a finance charge on his average daily balance of $898.87. His APR is 21%. What is his finance charge for this billing cycle?

Example Four Jake had these daily balances on his credit card for his last billing period. He did not pay the card in full the previous month, so he will have to pay a finance charge. The APR is 18.6%. Two days @ $331.98 Eleven days @ $1,203.04 Four days @ $996.71 Thirteen days @ $1,002.76 What is the average daily balance? What is the finance charge?

Example Four Continued