2. Monday, April 3, 2017
Objective: Students will be able to examine ways to avoid and eliminate credit card debt and develop strategies to become a low-risk borrower by improving one's personal credit score. Purpose: Maintaining good credit allows an individual to have more financial flexibility and opportunities.

4. Credit Cards Features to Be Aware of Traveler and Entertainment Cards
Minimum Payment
Annual fees
Interest rates (higher for people with no credit or bad credit)
Traveler and Entertainment Cards
Pay full amount of debt each month, no interest
Disadvantage: limited acceptance
Examples: American Express, Diners Club International

5. Benefits of Credit Cards
Ease of making purchases
It may make it easier for you to return the item
Having good credit will allow you to make more purchases using credit and reduce your costs for using credit
Credit cards can also be useful in times of emergency
Extra benefits (rewards)

6. Risks of Credit Cards Overspending/Buying things out of impulse
Interest payments can add up if you take your time to pay off your debts
Credit cards can be lost or stolen. If this happens, contact customer support to have your card frozen so no one else can use it.

8. Steps to Establish Credit
Maintain savings and checking accounts
Get a credit card from a major retailer
These are easier to get than getting a credit card from a bank
Use your bank deposits as collateral for a credit card
Credit card payments should not exceed the amount in your bank account

9. How to Choose a Credit Card
Know the Annual Percentage Rate (APR), or yearly interest rate
Know the credit limit
Know the monthly interest rate
Know if there are any fees and how much they are
Common fees are membership fees, late fees, and exceeding your credit limit

10. Types of Credit Open-end credit Closed-end credit
a line of credit that can be used repeatedly, within an established borrowing limit
finance charges apply to the unpaid balance
examples: credit card, home-equity line of credit
Closed-end credit
a loan for a set amount that requires regular payments at certain intervals
finance charges are agreed upon at the start of the loan
examples: vehicle loan, student loan, mortgage

11. The longer it takes to pay off a credit card purchase, the more the consumer will pay in interest. Why would a person choose to take five years to pay off a $500 purchase?

12. Ways to Eliminate Credit Card Debt
buy what you can afford
pay off any credit purchases each month to avoid fees and interest charges
reduce the use of or stop using credit cards
pay more than the minimum payment amount
do the math and lay out a plan

16. How to Maintain a Good Credit Score
1. Pay your bills on time
2. Keep your credit balances low
3. Manage your debt
4. Don’t overborrow or overspend
5. Watch your credit rating

18. Review What is an advantage of buying things using credit?
What features of a credit card do you need to be aware of when choosing a card?
How do you keep good credit and stay out of credit card debit?