1. Credit Cards What is the difference between the credit cards?
Do I need one?
What are credit cards for?
Why are there so many regulations on credit cards?
How does it affect my credit score?

2. Name Credit Card Companies?
In a groups of three (3), write down all the different types of credit card companies that you know, have seen, or use?
Think about the different types of credit cards your parents or friends have.

3. Major Credit Card Companies
MasterCard
Visa
Discover
American Express

4. Companies Department Stores Banks Airline Wholesale Businesses
Sears (SO)
Macy’s (SO)
Neiman Marcus (SO)
Victoria Secrets (SO)
Banana Republic/Gap (SO)
Banks
Chase
Bank of America
SO – Only used at store
Airline
Hawaiian Airlines
United
Wholesale
Costco
Sam’s Club
Businesses
Home Depot (SO)
Lowes (SO)

5. Store Credit Cards Why do so many stores have credit cards?
Why do many stores only have credit cards that can be used at their own store?

6. Store Credit Cards Company saves money when customers use their card
Companies pay fees to credit card companies for the convenience (percentage of sale or flat fee)
Companies make money on credit card balances that are not paid in full
Store Credit Cards typically have the highest interest rates of all credit cards
Allows company to track purchasing habits and send you coupons
Sends you junk mail for upcoming sales to entice buying
Reduces the amount of liabilities the companies have by only allowing in store purchases on card

7. Smart or Unsmart Business Owners?
Companies pay fees to credit card companies for the convenience (percentage of sale or flat fee)
Why do some businesses accept credit cards while other businesses don’t?
Not everyone carries CASH. But by not accepting credit card it creates a higher profit margin on sales.

8. Minimum Purchase Amounts
Why do some businesses require a minimum dollar amount to use a credit card?
Last question stems from small businesses that require $5 for purchases or bars that often require $25 minimums to use cards.

9. Interest Rates What is an interest rate?
What is the typical interest rate for a credit card?

10. Interest Rates
Vary from 7-36% on average depending on your credit score and credit history.
In Brazil – it can range from 50%-300% for interest. Why?
Department Store cards often yield the highest Annual Percentage Rates (APR)
Business Cards and Exclusive cards may hold lower interest rates. Why?
Businesses and the rich spend more money so unpaid bills will still be substantial despite lower APR. Exclusive cards, for the top 1-2% of individuals – typically $250,000+ a year for income, may have the lowest if not zero interest as some tack on annually fees for membership or fees for acquiring specialty items or exclusive trips/opportunities that are unique (money can buy anything).

11. Selecting The Right Card
Interest Rates vs. Interest Rates
How to select a credit card?
Benefits of credit cards
Assessing multiple offers

12. Whose got the best offer?
In your group, use the provided credit card offers write down the following information:
Who is offering the credit card?
What is the interest rates (APR)?
Due Dates (Billing Cycle)
Benefits of the cards
Late payment fees
Annual fees
Transaction fees
When completed switch offers with another group

13. Which offer do you prefer?
Between the offers you received, which offer will your group accept?
What other research could you conduct to do know what are your best options?

14. Quiz
Why is knowing your interest rate (Annual Percentage Rate) so important?
Why is understanding the fees important in selecting a card?
1. APR, Fees, Due Dates

15. Paying off your balances How to manage your money
Spending vs. Paying
Paying off your balances
How to manage your money

16. Paying off Balances Spend only what you can afford to pay
Avoid paying only minimums
Minimum Payments are typically calculated by 2-4% plus interest rate or fees of the card balance
$100 would have a minimum payment of $2-4 plus interest rate or processing fees
Link provided shows how much interest you would pay, how long it would take to pay off, and a graph to show payment. In the INPUT tab I will be contrasting months versus including a set amount to show the difference in interest paid (Desired Months or Desired Monthly Payment).

17. Balance Problems
What if you have two cards and you cannot pay off both balances this month. How would you pay your credit card bills?
Students should look at which card has the highest interest rate and pay that balance off first completely or primarily. The other card needs to have at least the minimum payment to avoid being considered delinquent.

18. Quiz #2 – Balance Problems
You currently make $600 a month
What would you do?
What if you only had $350 to pay bills?
VISA Card
Balance $1000
Minimum Payment $50
15% APR
MASTERCARD
Balance $400
Minimum $20
12% APR

19. Quiz #3 – Balance Problems
What if you only had $500 to pay bills?
What would you do?
VISA Card
Balance $1000
Minimum Payment $15
10% APR
MASTERCARD
Balance $200
Minimum Payment $50
18% APR