1. Credit Card Benefits Make sure to know all terms and conditions May charge fees or higher interest rates Cash Rebates Warranties for items purchased Frequent Flyer Miles Travel accident insurance Other benefits?

2. Summary 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

3. How do I obtain a credit card? Comparison shop for a credit card Compare credit card offers and determine which card to apply for Complete a credit application A form requesting information about a person’s ability to repay Lenders conduct a credit investigation A comparison of information on credit application to information on a credit report Approval? Applicant may or may not be approved (depends on creditworthine ss) Credit card companies send pre-approved credit card applications in the mail when the individual has passed their initial credit check

4. 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.

5. Transactions Reference Number Trans Date Post Date Description of Transaction or CreditAmount XXXX12/222/23 Store #1$529.57 XXXX22/252/26 Payment$450.00 - XXXX32/26 Cash Advance$318.00 XXXX43/153/17 Balance Transfer$785.00 Fees XXXX52/23 Late Fee$35.00 XXXX62/27 Balance Transfer Fee$23.55 XXXX72/28 Cash Advance Fee$10.90 Total Fees for this Period$69.45 Interest Charged Interest Charge on Purchases$6.31 Interest Charge on Cash Advances$4.58 Total Interest for this Period$10.89 Payment Information New Balance$1784.53 Minimum Payment Due$53.00 Payment Due Date4/20/12 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 rate of 28.99% 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… Interest Charge Calculation Type of BalanceAnnual Percentage Rate (APR)Balance Subject to Interest RateInterest Charge Purchases14.99%$512.14$6.31 Cash Advances21.99%$253.50$4.58 Balance Transfers0.00%$637.50$0.00 Summary of Account Activity Previous Balance535.07 Payments-450.00 Purchases+529.57 Balance Transfers+785.00 Cash Advances+318.00 Past Due Amount+0.00 Fees Charged+69.45 Interest Charged+10.89 New Balance$1,784.53 Credit Limit$2,000.00 Available credit$215.47 Statement closing date3/22/2012 Days in billing cycle30 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 10 years$3,284 $623 years$2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: 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 level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to hose transactions as well. Important Changes to Your Account Terms 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 your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, APR for Purchases will increase to 16.99%. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. 2012 Totals Year-to-Date Total fees charged in 2012$90.14 Total interest charged in 2012$18.27 Andrew’s Credit Card Statement Summary of Account Activity Overview of credit card How much did Andrew charge in new purchases during this credit card billing cycle? $529.57 10 9 8 7 6 2 4 5 1 3 Summary of Account Activity Previous Balance535.07 Payments-450.00 Purchases+529.57 Balance Transfers+785.00 Cash Advances+318.00 Past Due Amount+0.00 Fees Charged+69.45 Interest Charged+10.89 New Balance$1,784.53 Credit Limit$2,000.00 Available credit$215.47 Statement closing date3/22/2012 Days in billing cycle30

6. Transactions Reference Number Trans Date Post Date Description of Transaction or CreditAmount XXXX12/222/23 Store #1$529.57 XXXX22/252/26 Payment$450.00 - XXXX32/26 Cash Advance$318.00 XXXX43/153/17 Balance Transfer$785.00 Fees XXXX52/23 Late Fee$35.00 XXXX62/27 Balance Transfer Fee$23.55 XXXX72/28 Cash Advance Fee$10.90 Total Fees for this Period$69.45 Interest Charged Interest Charge on Purchases$6.31 Interest Charge on Cash Advances$4.58 Total Interest for this Period$10.89 Payment Information New Balance$1784.53 Minimum Payment Due$53.00 Payment Due Date4/20/12 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 rate of 28.99% 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… Interest Charge Calculation Type of BalanceAnnual Percentage Rate (APR)Balance Subject to Interest RateInterest Charge Purchases14.99%$512.14$6.31 Cash Advances21.99%$253.50$4.58 Balance Transfers0.00%$637.50$0.00 Summary of Account Activity Previous Balance535.07 Payments-450.00 Purchases+529.57 Balance Transfers+785.00 Cash Advances+318.00 Past Due Amount+0.00 Fees Charged+69.45 Interest Charged+10.89 New Balance$1,784.53 Credit Limit$2,000.00 Available credit$215.47 Statement closing date3/22/2012 Days in billing cycle30 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 10 years$3,284 $623 years$2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: 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 level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to hose transactions as well. Important Changes to Your Account Terms 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 your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, APR for Purchases will increase to 16.99%. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. 2012 Totals Year-to-Date Total fees charged in 2012$90.14 Total interest charged in 2012$18.27 Andrew’s Credit Card Statement 10 9 8 7 6 2 4 5 1 3 Payment Information Total new balance Minimum payment amount Date payment is due Payment due dates must be consistent month to month Monthly statements must be sent at least 21 days before payment is due What is Andrew’s minimum payment due for this billing cycle? $53.00 Payment Information New Balance$1784.53 Minimum Payment Due$53.00 Payment Due Date4/20/12 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 rate of 28.99% 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 additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 10 years$3,284 $623 years$2,232

7. Transactions Reference Number Trans Date Post Date Description of Transaction or CreditAmount XXXX12/222/23 Store #1$529.57 XXXX22/252/26 Payment$450.00 - XXXX32/26 Cash Advance$318.00 XXXX43/153/17 Balance Transfer$785.00 Fees XXXX52/23 Late Fee$35.00 XXXX62/27 Balance Transfer Fee$23.55 XXXX72/28 Cash Advance Fee$10.90 Total Fees for this Period$69.45 Interest Charged Interest Charge on Purchases$6.31 Interest Charge on Cash Advances$4.58 Total Interest for this Period$10.89 Payment Information New Balance$1784.53 Minimum Payment Due$53.00 Payment Due Date4/20/12 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 rate of 28.99% 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… Interest Charge Calculation Type of BalanceAnnual Percentage Rate (APR)Balance Subject to Interest RateInterest Charge Purchases14.99%$512.14$6.31 Cash Advances21.99%$253.50$4.58 Balance Transfers0.00%$637.50$0.00 Summary of Account Activity Previous Balance535.07 Payments-450.00 Purchases+529.57 Balance Transfers+785.00 Cash Advances+318.00 Past Due Amount+0.00 Fees Charged+69.45 Interest Charged+10.89 New Balance$1,784.53 Credit Limit$2,000.00 Available credit$215.47 Statement closing date3/22/2012 Days in billing cycle30 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 10 years$3,284 $623 years$2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: 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 level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to hose transactions as well. Important Changes to Your Account Terms 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 your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, APR for Purchases will increase to 16.99%. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. 2012 Totals Year-to-Date Total fees charged in 2012$90.14 Total interest charged in 2012$18.27 Andrew’s Credit Card Statement 10 9 8 7 6 2 4 5 1 3 Late Payment Warning What will happen if a payment is late- usually additional fees and a higher interest rate How long will it take Andrew to pay off the balance of his credit card if he only pays the minimum payment? 10 years Minimum Payment Warning Estimate of how long it can take to pay off balance if only the minimum payment is made Payment Information New Balance$1784.53 Minimum Payment Due$53.00 Payment Due Date4/20/12 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 rate of 28.99% 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 additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 10 years$3,284 $623 years$2,232

8. Transactions Reference Number Trans Date Post Date Description of Transaction or CreditAmount XXXX12/222/23 Store #1$529.57 XXXX22/252/26 Payment$450.00 - XXXX32/26 Cash Advance$318.00 XXXX43/153/17 Balance Transfer$785.00 Fees XXXX52/23 Late Fee$35.00 XXXX62/27 Balance Transfer Fee$23.55 XXXX72/28 Cash Advance Fee$10.90 Total Fees for this Period$69.45 Interest Charged Interest Charge on Purchases$6.31 Interest Charge on Cash Advances$4.58 Total Interest for this Period$10.89 Payment Information New Balance$1784.53 Minimum Payment Due$53.00 Payment Due Date4/20/12 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 rate of 28.99% 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… Interest Charge Calculation Type of BalanceAnnual Percentage Rate (APR)Balance Subject to Interest RateInterest Charge Purchases14.99%$512.14$6.31 Cash Advances21.99%$253.50$4.58 Balance Transfers0.00%$637.50$0.00 Summary of Account Activity Previous Balance535.07 Payments-450.00 Purchases+529.57 Balance Transfers+785.00 Cash Advances+318.00 Past Due Amount+0.00 Fees Charged+69.45 Interest Charged+10.89 New Balance$1,784.53 Credit Limit$2,000.00 Available credit$215.47 Statement closing date3/22/2012 Days in billing cycle30 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 10 years$3,284 $623 years$2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: 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 level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to hose transactions as well. Important Changes to Your Account Terms 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 your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, APR for Purchases will increase to 16.99%. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. 2012 Totals Year-to-Date Total fees charged in 2012$90.14 Total interest charged in 2012$18.27 Andrew’s Credit Card Statement 10 9 8 7 6 2 4 5 1 3 Notice of Changes to Your Interest Rates If the Penalty APR is triggered, cardholder must be notified that their rates will be increasing Has Andrew triggered the Penalty APR? Yes, he will pay 28.99% on all transactions made after 4/9/12. Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: 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 level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to hose transactions as well.

9. Transactions Reference Number Trans Date Post Date Description of Transaction or CreditAmount XXXX12/222/23 Store #1$529.57 XXXX22/252/26 Payment$450.00 - XXXX32/26 Cash Advance$318.00 XXXX43/153/17 Balance Transfer$785.00 Fees XXXX52/23 Late Fee$35.00 XXXX62/27 Balance Transfer Fee$23.55 XXXX72/28 Cash Advance Fee$10.90 Total Fees for this Period$69.45 Interest Charged Interest Charge on Purchases$6.31 Interest Charge on Cash Advances$4.58 Total Interest for this Period$10.89 Payment Information New Balance$1784.53 Minimum Payment Due$53.00 Payment Due Date4/20/12 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 rate of 28.99% 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… Interest Charge Calculation Type of BalanceAnnual Percentage Rate (APR)Balance Subject to Interest RateInterest Charge Purchases14.99%$512.14$6.31 Cash Advances21.99%$253.50$4.58 Balance Transfers0.00%$637.50$0.00 Summary of Account Activity Previous Balance535.07 Payments-450.00 Purchases+529.57 Balance Transfers+785.00 Cash Advances+318.00 Past Due Amount+0.00 Fees Charged+69.45 Interest Charged+10.89 New Balance$1,784.53 Credit Limit$2,000.00 Available credit$215.47 Statement closing date3/22/2012 Days in billing cycle30 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 10 years$3,284 $623 years$2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: 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 level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to hose transactions as well. Important Changes to Your Account Terms 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 your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, APR for Purchases will increase to 16.99%. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. 2012 Totals Year-to-Date Total fees charged in 2012$90.14 Total interest charged in 2012$18.27 Andrew’s Credit Card Statement 10 9 8 7 6 2 4 5 1 3 Important Changes to Your Account Terms Must be notified of any significant changes at least 45 days before the changes take effect Any changes can only apply to new charges Account can be closed before the changes go into effect Other than implementation of the Penalty APR, will there be any other changes to Andrew’s account terms? Yes, his APR for Purchases is increasing to 16.99%. Important Changes to Your Account Terms 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 your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, APR for Purchases will increase to 16.99%. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions.

10. Transactions Reference Number Trans Date Post Date Description of Transaction or CreditAmount XXXX12/222/23 Store #1$529.57 XXXX22/252/26 Payment$450.00 - XXXX32/26 Cash Advance$318.00 XXXX43/153/17 Balance Transfer$785.00 Fees XXXX52/23 Late Fee$35.00 XXXX62/27 Balance Transfer Fee$23.55 XXXX72/28 Cash Advance Fee$10.90 Total Fees for this Period$69.45 Interest Charged Interest Charge on Purchases$6.31 Interest Charge on Cash Advances$4.58 Total Interest for this Period$10.89 Payment Information New Balance$1784.53 Minimum Payment Due$53.00 Payment Due Date4/20/12 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 rate of 28.99% 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… Interest Charge Calculation Type of BalanceAnnual Percentage Rate (APR)Balance Subject to Interest RateInterest Charge Purchases14.99%$512.14$6.31 Cash Advances21.99%$253.50$4.58 Balance Transfers0.00%$637.50$0.00 Summary of Account Activity Previous Balance535.07 Payments-450.00 Purchases+529.57 Balance Transfers+785.00 Cash Advances+318.00 Past Due Amount+0.00 Fees Charged+69.45 Interest Charged+10.89 New Balance$1,784.53 Credit Limit$2,000.00 Available credit$215.47 Statement closing date3/22/2012 Days in billing cycle30 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 10 years$3,284 $623 years$2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: 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 level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to hose transactions as well. Important Changes to Your Account Terms 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 your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, APR for Purchases will increase to 16.99%. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. 2012 Totals Year-to-Date Total fees charged in 2012$90.14 Total interest charged in 2012$18.27 Andrew’s Credit Card Statement 10 9 8 7 6 2 4 5 1 3 Transactions List of all transactions since the last statement Should be reviewed for errors Fees and Interest Charged Fees and interest charges must be listed separately Did Andrew pay a late fee? Yes, he paid $35.00 for a late fee. Transactions Reference Number Trans Date Post Date Description of Transaction or Credit Amount XXXX12/222/23Store #1$529.57 XXXX22/252/26Payment$450.00 - XXXX32/26 Cash Advance$318.00 XXXX43/153/17Balance Transfer$785.00 Fees XXXX52/23 Late Fee$35.00 XXXX62/27 Balance Transfer Fee$23.55 XXXX72/28 Cash Advance Fee$10.90 Total Fees for this Period $69.45 Interest Charged 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 Total fees charged in 2012$90.14 Total interest charged in 2012$18.27

11. Transactions Reference Number Trans Date Post Date Description of Transaction or CreditAmount XXXX12/222/23 Store #1$529.57 XXXX22/252/26 Payment$450.00 - XXXX32/26 Cash Advance$318.00 XXXX43/153/17 Balance Transfer$785.00 Fees XXXX52/23 Late Fee$35.00 XXXX62/27 Balance Transfer Fee$23.55 XXXX72/28 Cash Advance Fee$10.90 Total Fees for this Period$69.45 Interest Charged Interest Charge on Purchases$6.31 Interest Charge on Cash Advances$4.58 Total Interest for this Period$10.89 Payment Information New Balance$1784.53 Minimum Payment Due$53.00 Payment Due Date4/20/12 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 rate of 28.99% 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… Interest Charge Calculation Type of BalanceAnnual Percentage Rate (APR)Balance Subject to Interest RateInterest Charge Purchases14.99%$512.14$6.31 Cash Advances21.99%$253.50$4.58 Balance Transfers0.00%$637.50$0.00 Summary of Account Activity Previous Balance535.07 Payments-450.00 Purchases+529.57 Balance Transfers+785.00 Cash Advances+318.00 Past Due Amount+0.00 Fees Charged+69.45 Interest Charged+10.89 New Balance$1,784.53 Credit Limit$2,000.00 Available credit$215.47 Statement closing date3/22/2012 Days in billing cycle30 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 10 years$3,284 $623 years$2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: 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 level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to hose transactions as well. Important Changes to Your Account Terms 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 your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, APR for Purchases will increase to 16.99%. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. 2012 Totals Year-to-Date Total fees charged in 2012$90.14 Total interest charged in 2012$18.27 Andrew’s Credit Card Statement 10 9 8 7 6 2 4 5 1 3 Year-to-Date Totals Total amount paid in fees and interest charges for the current year What is the total amount of interest Andrew has paid in the year 2012? $18.27 Interest Charge Calculation Summary of the different types of transactions Why is it important to understand how to read a credit card statement? Transactions Reference Number Trans Date Post Date Description of Transaction or Credit Amount XXXX12/222/23Store #1$529.57 XXXX22/252/26Payment$450.00 - XXXX32/26 Cash Advance$318.00 XXXX43/153/17Balance Transfer$785.00 Fees XXXX52/23 Late Fee$35.00 XXXX62/27 Balance Transfer Fee$23.55 XXXX72/28 Cash Advance Fee$10.90 Total Fees for this Period $69.45 Interest Charged 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 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 Purchases14.99%$512.14$6.31 Cash Advances21.99%$253.50$4.58 Balance Transfers 0.00%$637.50$0.00

12. Cardholder Protections & Rights Truth in Lending Act Protects from unauthorized credit card charges If the actual credit card was used Cardholder liability is limited to $50.00 MUST write a letter within 60 days of the bill containing the error If only the card number was used Cardholder has no liability

13. Cardholder Protections & Rights 2009 CARD Act Provides various protections for cardholders If you are under 21 Must be 21 years or older to receive a credit card Obtain a co- signer Show proof of sufficient income to make payments A co-signer is equally responsible for the loan

14. Cardholder Protections & Rights Cannot increase rates for the first 12 months after an account is open unless: Card has a variable interest rate Cardholder is more than 60 days late in paying their bill Card has an introductory rate (the introductory rate must be in place for at least 6 months and then the rate can increase) 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

15. Cardholder Protections & Rights If set-up and maintenance fees are charged before the card is used These non-penalty fees cannot exceed 25% of the initial credit limit For example, if a card has a credit limit of $1,000 the total fees for the first year (not including penalty fees) cannot exceed $250 2009 CARD Act- protection from over-the- limit fees Cardholders have to “opt-in” to allowing transactions that take them over their credit limit

16. Cardholder Protection & Rights 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 Fair Credit Billing Act Protects from broken, undelivered, unsatisfied purchases made with credit cards

17. Credit Card Safety Tips Sign card with a signature and “Please see I.D.” Do not leave cards lying around, and report lost/stolen cards promptly Close unwanted accounts by writing and phone then cut up the card Do not give out account numbers unless making a purchase Keep a list of all cards, account numbers, and phone lists separate from cards Shred all pre- approved credit card offers, applications, or solicitations

18. Online Shopping Safety Tips 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

19. Summary 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

20. Summary 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