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**Credit Card vocabulary Match Up**

Match the terms with their definition Divide the room in half give them 5 minutes to fill in the terms with their definitions. Have them get close as groups. Put one tap light in the middle of each team (2 lights). After I call out a number each team gets 30 seconds to answer as fast as possible, the first team to tap their light on and answer correctly gets the point.

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**Advantages to using Credit Cards**

Convenient payment tool Protection against fraud Opportunity to establish a positive credit history Useful for emergencies Online shopping is safer than using a debit card because of the Fair Credit Billing Act protection Often required to hold a reservation Able to purchase “big ticket” items and spread out payments Possibility of receiving bonuses, such as frequent flyer miles or cash rebates

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**Disadvantages to using Credit Cards**

Interest can be costly when a balance is revolved Responsible for lost/stolen cards Additional penalty fees may apply Applying for multiple accounts can lower your credit score Tempting to overspend Risk of identity theft

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**Credit CREDIT- INTEREST-**

When goods, services or money is received in exchange for a promise to pay a definite sum of money at a future date INTEREST- The price of money- when referring to credit, interest is the charge for borrowing money

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**The person or organization that is receiving the money from the lender**

Lender and Borrower BORROWER- The person or organization that is receiving the money from the lender LENDER- The person or organization who has the resources to provide the individual with a loan

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**What is the difference between a credit card and a debit card?**

Debit Cards What is a debit card? A plastic card which looks like a credit card, but is electronically connected to the cardholder’s bank account Money is immediately withdrawn from the cardholders checking account What is the difference between a credit card and a debit card?

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**Credit limit is the maximum dollar amount loaned**

Credit Card What is a credit card? Pre-approved credit which can be used for the purchase of goods and services now and payment of them later A credit cards credit limit varies based upon an individual’s perceived creditworthiness Credit limit is the maximum dollar amount loaned Creditworthiness is an individuals ability and willingness to pay the money back

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**Annual Percentage Rate (APR)**

Credit Card Interest Interest is charged each month the balance is not paid in full Rate at which interest is charged is referred to as: Annual Percentage Rate (APR) The cost of credit expressed as a yearly interest rate

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Minimum Payments Required to make at least a minimum payment each month Usually only a small percentage (2.5-5%) of the total balance due Cardholders who only make the minimum payment: Make slow progress paying off card balance Pay substantially more than what was initially charged to the card

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**Minimum Payments Amount charged to credit card in one purchase APR**

Time to pay off the credit card Total amount paid in interest Total amount paid $2,000 18% $50.00 62 months $1,077.25 $3,077.25 $500 12% $25.00 23 months $60.67 $560.67

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**Credit History – Positive and Negative Card Use**

Credit cards can have a positive or negative impact on an individuals credit history Credit Report A record of a consumer’s credit history that includes information about credit card use as well as the use of other types of credit, such as auto loans, student loans and mortgage loans Credit Score A number that summarizes an individual’s credit record and history. It is a numeric “grade” of a consumer’s financial reliability

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**Positive Credit Card use**

Helps develop positive credit history and credit report Proper credit card use Earn a high credit score A high credit score gives the consumer the opportunity to have lower interest rates on loans, the privilege to use different forms of credit, and an easier approval process for future credit

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**Positive Credit Card Use**

Examples of positive credit card behaviors: Paying credit card balances in full every month Paying credit card bills on time Applying for only credit cards that are needed Keeping track of all charges by keeping receipts and using a check register Checking the monthly credit card statement for errors

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**Negative Credit Card Use**

Develops negative credit history and credit report Improper credit card use Lower credit score Consumers with low credit scores have difficulty getting loans, difficulty renting apartments, pay higher interest rates, pay higher insurance rates, and have difficulty obtaining a job

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**Negative Credit Card use**

Examples of negative credit card behaviors: Making late credit card payments Paying only the minimum payment Exceeding the card’s credit limit (usually triggers a penalty fee) Charging items that can’t be paid off immediately Owning too many credit cards

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NO Credit If an individual has not used credit, they will not have any information in their credit report Not having a credit report can cause an individual to be denied credit

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Credit Card Offers Credit card issuers are required to disclose the terms and fees of credit cards in an easy to read box format This is called the Schumer box

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**Interest Rates and Interest Charges Annual Percentage Rate (APR)**

Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99% This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99% Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: Make a late payment; Go over your credit limit; Make a payment that is returned; or Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209. Annual Fee: $20 Account Set-up Fee: $20 (one-time fee) Participation Fee: $12 annually ($1 per month) Additional Card Fee: $5 annually (if applicable) Transaction Fees Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100) Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000 Over-the-limit: $29 Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Annual Percentage Rate (APR) for Purchases This section discloses the interest paid for purchases on the card. Multiple interest rates may be listed here, because the final interest rate may depend on the creditworthiness of the applicant

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**Interest Rates and Interest Charges The introductory rate depends**

Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99% This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99% Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: Make a late payment; Go over your credit limit; Make a payment that is returned; or Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209. Annual Fee: $20 Account Set-up Fee: $20 (one-time fee) Participation Fee: $12 annually ($1 per month) Additional Card Fee: $5 annually (if applicable) Transaction Fees Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100) Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000 Over-the-limit: $29 Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Introductory Rate If the credit card has an introductory rate it will be shown in this section, which is the APR charged during the credit card's introductory period after a credit card account is opened. The card will have a different APR after the introductory period ends What is the introductory rate for this credit card offer? The introductory rate depends on the creditworthiness of the applicant, but it will be 12.99%, 13.99%, or 14.99%

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**Interest Rates and Interest Charges**

Variable-rate APR Some cards will have a variable-rate APR, which is an APR that may change depending on other factors, such as the prime rate. The prime rate is an index that represents the interest rate most banks charge their most credit-worthy customers Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99% This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99% Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: Make a late payment; Go over your credit limit; Make a payment that is returned; or Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209. Annual Fee: $20 Account Set-up Fee: $20 (one-time fee) Participation Fee: $12 annually ($1 per month) Additional Card Fee: $5 annually (if applicable) Transaction Fees Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100) Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000 Over-the-limit: $29 Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill What is the APR for Purchases for this credit card offer? 14.99% Is this a variable-rate APR or a fixed-rate APR? Variable-rate APR

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**Interest Rates and Interest Charges APR for Balance Transfers**

Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99% This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99% Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: Make a late payment; Go over your credit limit; Make a payment that is returned; or Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209. Annual Fee: $20 Account Set-up Fee: $20 (one-time fee) Participation Fee: $12 annually ($1 per month) Additional Card Fee: $5 annually (if applicable) Transaction Fees Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100) Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000 Over-the-limit: $29 Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill APR for Balance Transfers This section discloses the interest paid for balance transfers, which is the act of transferring debt from one credit card account to another. Balance transfer fees may apply, even if the balance transfer APR is 0% What is the APR for balance transfers for this credit card offer? 15.99%

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**Interest Rates and Interest Charges**

Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99% This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99% Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: Make a late payment; Go over your credit limit; Make a payment that is returned; or Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209. Annual Fee: $20 Account Set-up Fee: $20 (one-time fee) Participation Fee: $12 annually ($1 per month) Additional Card Fee: $5 annually (if applicable) Transaction Fees Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100) Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000 Over-the-limit: $29 Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill APR for Cash Advances This section discloses the interest paid for cash advances, such as withdrawing cash from an ATM using a credit card. Cash advance fees may also apply What is the APR for cash advances for this credit card offer? 21.99%

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**Interest Rates and Interest Charges**

Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99% This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99% Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: Make a late payment; Go over your credit limit; Make a payment that is returned; or Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209. Annual Fee: $20 Account Set-up Fee: $20 (one-time fee) Participation Fee: $12 annually ($1 per month) Additional Card Fee: $5 annually (if applicable) Transaction Fees Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100) Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000 Over-the-limit: $29 Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Penalty APR and When it Applies This section discloses the penalty APR, as well as the penalty terms that trigger the penalty APR to take effect Penalty APR is the interest rate charged on new transactions if the penalty terms in the credit card contract are triggered What is the Penalty APR for this credit card offer? 21.99%

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**How To Avoid Paying Interest on Purchases**

Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99% This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99% Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: Make a late payment; Go over your credit limit; Make a payment that is returned; or Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209. Annual Fee: $20 Account Set-up Fee: $20 (one-time fee) Participation Fee: $12 annually ($1 per month) Additional Card Fee: $5 annually (if applicable) Transaction Fees Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100) Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000 Over-the-limit: $29 Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill How To Avoid Paying Interest on Purchases This section explains how you can avoid interest charges on a credit card How can a cardholder avoid paying interest on a credit card? By paying credit card bills in full by the due date

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**Interest Rates and Interest Charges Minimum Interest Charge**

Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99% This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99% Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: Make a late payment; Go over your credit limit; Make a payment that is returned; or Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209. Annual Fee: $20 Account Set-up Fee: $20 (one-time fee) Participation Fee: $12 annually ($1 per month) Additional Card Fee: $5 annually (if applicable) Transaction Fees Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100) Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000 Over-the-limit: $29 Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Minimum Interest Charge Credit card companies often have a minimum interest amount. These charges typically range from $0.50 to $2 per month and are disclosed in this section of the credit card offer What is the minimum interest charge for this credit card? $1.50

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**For Credit Card Tips from the Federal Reserve Board**

Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99% This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99% Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: Make a late payment; Go over your credit limit; Make a payment that is returned; or Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209. Annual Fee: $20 Account Set-up Fee: $20 (one-time fee) Participation Fee: $12 annually ($1 per month) Additional Card Fee: $5 annually (if applicable) Transaction Fees Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100) Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000 Over-the-limit: $29 Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill For Credit Card Tips from the Federal Reserve Board This section directs consumers to the Federal Reserve website to obtain more information about credit cards

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**Set-up and Maintenance Fees Interest Rates and Interest Charges**

This section discloses any set-up and maintenance fees for the card, which can include annual fees, account set-up fees, participation fees, and additional card fees Annual fee is a yearly fee that may be charged for having a credit card Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99% This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99% Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: Make a late payment; Go over your credit limit; Make a payment that is returned; or Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209. Annual Fee: $20 Account Set-up Fee: $20 (one-time fee) Participation Fee: $12 annually ($1 per month) Additional Card Fee: $5 annually (if applicable) Transaction Fees Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100) Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000 Over-the-limit: $29 Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill What is the annual fee for this credit card? $20

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**Interest Rates and Interest Charges**

Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99% This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99% Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: Make a late payment; Go over your credit limit; Make a payment that is returned; or Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209. Annual Fee: $20 Account Set-up Fee: $20 (one-time fee) Participation Fee: $12 annually ($1 per month) Additional Card Fee: $5 annually (if applicable) Transaction Fees Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100) Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000 Over-the-limit: $29 Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill $5 or 3% of the amount of each cash advance (whichever is greater) Transcation Fees This section discloses any transaction fees for the card, which can include balance transfer fees, cash advance fees, and foreign transaction fees What is the fee for cash advances for this card?

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Does this card have an over-the limit fee? Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99% This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99% Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: Make a late payment; Go over your credit limit; Make a payment that is returned; or Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209. Annual Fee: $20 Account Set-up Fee: $20 (one-time fee) Participation Fee: $12 annually ($1 per month) Additional Card Fee: $5 annually (if applicable) Transaction Fees Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100) Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000 Over-the-limit: $29 Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Yes, the over-the-limit fee is $29. Penalty Fees This section discloses the penalty fees for the card, which can include late-payment, over-the-limit, and returned payment fees Late payment fee is charged when a cardholder does not make the minimum monthly payment by the due date Over-the-limit fee is charged if the account balance goes over the set credit limit

30
**How we calculate your balance**

What method is used to calculate the balance on this card? Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99% This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99% Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: Make a late payment; Go over your credit limit; Make a payment that is returned; or Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209. Annual Fee: $20 Account Set-up Fee: $20 (one-time fee) Participation Fee: $12 annually ($1 per month) Additional Card Fee: $5 annually (if applicable) Transaction Fees Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100) Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000 Over-the-limit: $29 Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill Average daily balance (including new purchases) How we calculate your balance Credit card companies can use one of several methods to calculate the outstanding balance on a credit card. The method used is disclosed in this section

31
**Loss of Introductory APR**

Interest Rates and Interest Charges Annual Percentage Rate (APR) for Purchases 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness. After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate. APR for Balance Transfers 15.99% This APR will vary with the market based on the Prime Rate APR for Cash Advances 21.99% Penalty APR and When it Applies 28.99% This APR may be applied to your account if you: Make a late payment; Go over your credit limit; Make a payment that is returned; or Do any of the above on another account that you have with us. How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due. How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at Fees Set-up and Maintenance Fees NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209. Annual Fee: $20 Account Set-up Fee: $20 (one-time fee) Participation Fee: $12 annually ($1 per month) Additional Card Fee: $5 annually (if applicable) Transaction Fees Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100) Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater Foreign Transaction: 2% of each transaction in U.S. dollars Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000 Over-the-limit: $29 Returned Payment: $35 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” * Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill How can the introductory APR be lost on this card? If the cardholder is more than 60 days late in paying the bill What APR will the cardholder be charged if the introductory rate is lost? The Penalty APR of 28.99% Loss of Introductory APR If the card has an introductory rate, this area will list how the lower introductory rate can be lost

32
**Pre-Approved Credit Card Applications**

Credit card companies send pre-approved credit card applications in the mail If an individual is pre-approved for that particular card, they have passed the initial credit check Compare credit card offers and determine which card to apply for.

33
**Credit Card Safety Tips**

Do not leave cards lying around, and report lost or stolen cards promptly Close unwanted accounts by writing and phone, then cut up the card Sign card with a signature and “Please see ID” Do not give out account numbers unless making a purchase Keep a list of all cards, account numbers, and phone lists separate from cards Shred all pre-approved credit card offers, applications, or solicitations

34
**Online Shopping Safety Tips**

1. Use a temporary credit card number This is a one-time use only number A set amount will be charged to your credit card Then a number will be given to you to do your shopping 2. Use a credit card rather than a debit card Fair Credit Billing Act protect consumers while using a credit card to make purchases

35
Defining Credit Terms Annual percentage rate (APR): The cost of a loan over a full year expressed as a percentage. Bankruptcy: Legally getting out of having to repay debts; admitting and accepting financial failure. Destroys credit rating for seven -11 years; Capital: Assets in the form of cash and securities available to spend and invest Revolving Charge Account: Used to purchase goods or services in exchange for a promise to pay for the item(s) later.

36
**3 C’s Of Credit to determine if you are fit to have a credit card**

CREDIT WORTHINESS 3 C’s Of Credit to determine if you are fit to have a credit card *Capacity: Ability to fulfill obligations evidenced by diligence at work and prospects of continuing employment or income. Can you repay the Loan? *Character: The quality of one's reputation or name; financial or economic trustworthiness. Will you repay the loan? *Collateral: Security on a loan (house, jewelry, car, etc.) What you have in case you do not pay the loan

37
**Default Failure to repay a loan**

Cosigner: Second signer who guarantees to pay for the loan if the first party ( person who obtains the loan) defaults. Credit: A loan that allows immediate use of products or services in exchange for a promise to pay in the future. Credit Bureau: A private corporation that is a clearing house for consumer credit information. Collect information on credit practices of individuals. Credit rating (FICO): Creditor's evaluation of a debtor's willingness and ability to pay debts based on past performance. Ie: how promptly a person pays his/her debts Ranges from 350 to 850. Paying bills on time builds a good credit rating Default Failure to repay a loan

38
**Finance Charge The total dollar amount that it costs a consumer to use credit.**

TV Paid with Cash TV Paid with Credit Card Regularly $400.00 On Sale $360.00 No Interest Total Cost $360 21% A.P.R. 18 mo. pmts $26.00 per mo. $68.00 interest Months financed X monthly payment. Total Cost $468

39
**Interest Price paid for the use of rented or borrowed money.**

Garnishment Your employer pays your creditor before you receive your paycheck. Interest Price paid for the use of rented or borrowed money. Principal The original amount of a loan on which interest is based. Groceries on Credit Principle = $125.00 Interest = $14.00 Final Cost = $139.00 Clothing on Credit Principle = $350.00 Interest = $137.00 Final Cost = $487.00 When you make the last payment, will the stereo, clothing, food you purchased be long gone?

40
**3 Main types of credit: Sales Credit Cash Credit Service Credit**

Credit you receive when you make a purchase and promise to pay later. Cash Credit Credit you receive when you borrow cash and promise to pay it back later. Service Credit Credit given for immediate service one receives (utilities, dentist, hospital, etc.) that will be payed for later.

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