1. Credit Cards (pitfalls & proper use)
Proverbs 22:7
“The rich ruleth over the poor, and the borrower is servant to the lender”

2. Pay Off Your Charge Cards
No Where Can WE Earn 18 to 23 %
Minimum Payments Can Take Up to 30 Years
Take Money From All Sources to Pay
Cut-Em Up!!!

3. Proper Use of Credit Cards
Pay them off every month!!!!!!!!!
Do not carry a balance – ever.
Interest / fees / finance charges are a waste of money
Positives
Establish a positive credit history
Access to more money than you can carry safely
Some tickets, hotel rooms, rental cars require them
Extra warranties, protection from theft or damage
Insurance for rental cars at no extra charge
Points / discounts / rebates with some cards
Stop payments are possible with credit cards

4. Pitfalls of Credit Card Use (Be aware of these if you use them)
You may be tempted to spend more with credit cards
You pay finance charges or interest if you don’t pay off
Debt can be compounded by finance charges, raised interest rates, and other fees if a payment is missed
Problems can show up on you credit report
effects your credit history & you will pay higher interest rates
Cash advances carry fees and immediate interest charges
Rates are higher & there is no grace period for cash advances.
Cards with incentives (airline miles, etc.) often place restrictions that make them hard to redeem
Many charge an annual fee (whether or not you use them)

5. QUIZ Time!!
Try to answer the following questions, and keep track of how many you get correct.

6. Credit Card Quiz Question #1
How many credit cards does the average American family have? 6 8 11
The average American family has 8 credit cards.

7. Credit Card Quiz Question #2
Nearly 144 million Americans have general purpose credit cards. Approximately how many of them pay off their bill in full each month?
55 million
90 million
115 million
55 million Americans pay off their credit card bills in full each month.

8. Credit Card Quiz Question #3
Approximately how many Americans pay only the minimum payment required each month?
15 million
35 million
50 million
35 million Americans pay only the minimum payment required each month.

9. Credit Card Quiz Question #4
The credit card industry jargon for someone who pays his or her bill in full every month is:
a deadbeat
a revolver
a gamer
Those who pay their bills in full every month are referred to as “deadbeats”.

10. Credit Card Quiz Question #5
The credit card debt that the average American family carries is approximately:
$2,500
$8,000
$13,000
The average American family has credit card debt of roughly $8,000.

11. Credit Card Quiz Question #6
How much notice must a credit card company give its customers when changing the terms of the cardholder contract?
60 days
30 days
15 days
They may change the terms of the contract with only 15 days notice.

12. Credit Card Quiz Question #7
Which of the following is likely to trigger the universal default clause in a cardholder’s contract (meaning that the card issuer can raise the APR automatically)?
You went over your credit limit on another card.
You failed to make a payment to another creditor.
You applied for and received a loan.
ALL OF THE ABOVE !!!!!

13. Credit Card Quiz Question #8
Who regulates the national banks which issue most of the credit cards in the U.S.?
The Office of the Comptroller of the Currency
The Better Business Bureau
The attorney general in each state.
The OCC – part of the U.S. Treasury Department

14. Credit Card Quiz Question #9
If a person’s credit card is stolen – or the number is stolen – and it is used to charge purchases, the cardholder is obligated to:
Pay the credit card issuer $50 maximum
Pay 5% of the purchases charged by the thief
Pay the entire amount charged by the thief if the cardholder doesn’t notify the credit card company within 3 days of the theft.
You are only obligated to pay up to $50 for charges made to your card by a thief.

15. Credit Card Quiz Question #10
What does a high FICO score indicate?
The individual is likely to pay their bills.
The individual is more likely to carry debt.
The individual is likely to cancel his credit card and seek a better deal.
Your FICO score is your credit rating. A high rating means you are likely to pay your bills.

16. Credit Card Quiz Question #11
Why are there no legal limits on the amount of interest and fees that banks can charge for a credit card?
Some states allow higher interest and fees than others.
Two U.S. Supreme Court decisions permit banks to charge what the market will bear.
State usury laws permit them to do so.
Two U.S. Supreme Court decisions have allowed for it.

17. Grade Your Own Quiz
9 to 11 right – You probably have your FICO score memorized. You’re a pro!
6 to 9 right – You clearly know your way around a credit card statement.
3 to 6 right – You need a crash course in personal finance. Good news…we have a Sunday School Class just for you.
0 to 3 right – You should dispose of your credit card(s) and use cash for the foreseeable future.

18. Know Your Credit History
You are entitled to a free copy of your credit report once per year!
Choose any of the 3 credit agencies (TransUnion, Experian, Equifax)
Telephone:
Hearing Impaired TDD:
Get errors corrected!