Credit Cards Credit Cards Mr. Coronado Consumer Ed/C.A.H.
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Credit Cards Credit Cards Mr. Coronado Consumer Ed/C.A.H
Hist of Credit Cards in U.S. In U.S. over 144 million Amer have credit cards (1.4 trillion) 55 Million pay bills on time 90 Million do not pay bills on time (Where profits are for CC cop.
Building Credit Establish steady work record Pay all bills promptly Open checking account don’t bounce checks Get a co-signer on a loan and pay back the loan as agreed.
Effects of Credit Score Do you pay bills on time? Have you used credit cards before? How long have you been at your present job? Do you have a job?
Consequences if don’t pay Credit Card. What property do you own that can secure the loan? (Large T.V., Refrigerator, Furniture) Savings account (Deducted) Any investments (Stock Market) If don’t pay cc, you are taking out a loan and it can be very expensive.
Responsibilities of Credit Cards Borrow what you can pay Read & Understand credit contract (APR, fines, penalties for being late) Pay debts promptly Notify creditor if can’t make payments Report lost or stolen cc immediately Never give card # over the phone, unless you initiated the call.
Credit Card vs Debit Cards Used as open- ended accounts May have credit limit (Max you can charge) Purchases made with credit cards by banks charge merchants a transaction fee. Debit Cards automatically deducts $ from checking accounts No limit, (Fine if go over balance)
Legislation with Credit Cards Fair Credit and Charge Card Disclosure Act in 1988 Credit Card Issuers must inform consumers –Annual % rate (APR) –How monthly fees are calculated –Cost of all fees such as membership, transaction, cash advance, –Grace Period
Where can you get Credit Cards Can get from bank Private companies (Capital One, Cingular, Home Depot) Fill out application from mail