1. Credit Cards

2. Today we will discover….. What is a credit card? Who can get a credit card and how? The features of a credit card What happens if you lose a credit card? How to read a credit card statement

3. What is a credit Card? A credit card is a plastic card used to access a line of credit that has been established in advance. The cost of credit is expressed as interest. – U.S. statistics show the average family has long- term credit card debt in excess of $5,000

4. The smallest amount that can be paid in order to keep the account current is called the minimum payment. https://www.youtube.com/watch?v=Vz05A6cP6Iw

5. https://www.youtube.com/watch?v=qWWZ77-1YuA

6. Who can get a credit card? Over 21- credit history and proof of sufficient income to make payments Under 21- must have a co-signer or have proof of sufficient income to make payments A Pre-approved credit card application- means that a person has passed the initial credit check.

7. Credit Card Features ) Annual Percentage Rate APR The cost of credit expressed as a yearly interest rate The APR can fixed or variable.

8. Credit Card Features Cash Advance Rate May include fees as well as interest rate on amount of $ advanced

9. Credit Card Features Balance Transfer Rate Happens when a person switches balance from one card to another

10. Credit Card Features Introductory Rate Usually lower rate for a set period of time afterward it increases to a pre-determined rate.

11. Introductory Rate Usually a lower rate for a set period of time, afterward it increases to a predetermined rate

12. Credit Card Features Annual Fee-yearly fee that may be charged for having a credit card Late Fee- charged when a cardholder does not make the minimum monthly payment by the due date. Over the Limit Fee- charged if the account balance goes over the set credit limit

13. Credit Card Features Grace Period-The credit card issuer will allow you a certain number of days to pay your balance in full on the due date before tacking on a finance charge.credit

14. Credit Card Features Rewards – Frequent flyer miles – Warranties for items purchased – Travel insurance – Cash rebates Do the benefits outweigh the costs?

15. Lost Cards Report lost or stolen cards IMMEDIATELY! How much are you liable for? $0 is reported before it is fraudulently used $50 if it is used without authorization

16. Debit or Credit http://money.cnn.com/2013/12/20/pf/expert/debit-credit-cards/

17. Credit Card Statement http://www.federalreserve.gov/creditcard/flash/readingyourbill.html

18. The Schumer Box A Schumer Box is an easy-to-read table or “box” that discloses the rates, fees, terms and conditions of a credit card agreement as required under the Federal Truth in Lending Act

19. Real Life Story https://www.youtube.com/watch?v=7U6pmkTC8i0

20. Activities: Shopping for a Credit Card Reading a Credit Card Statement