1. CREDIT COUNSELING www.creditcards.com CREDIT CARDS GOOD VS. EVIL ARE ‘COLLEGE KIDS’ READY FOR CREDIT CARDS?COLLEGE KIDS

2. CREDIT COUNSELING www.creditcards.com CREDIT CARD TYPES RESEARCH  Reward Cards › Are for people who like to earn rewards for travel, dining, cash back etc.  Bank Cards › Are sponsored by individual banks. › MasterCard, Visa, Discover, Optima, GM and Ford cards which are › Bank defines spending limit › Based on your FICO score › Banks offer a choice of payment methods › pay the balance in full with no interest › pay a minimum part or some part of the balance with a finance charge.  Company or Retail store cards › Costco, Carson's, Wal-Mart or Target. › Only accepted by the specific company and do not have an annual fee › Terms/conditions of these cards vary widely

3. CREDIT COUNSELING www.creditcards.com NEED TO KNOW… CREDIT CARD REWARDS

4. CREDIT COUNSELING www.creditcards.com CREDIT CARDS 101 TERMS TO KNOW……. When selecting a credit card, the following credit terms and conditions are important because they affect the total cost of credit:  Annual Fee  Annual Fee › A flat, yearly charge similar to a membership fee, usually $25 to $50.  Annual Percentage Rate  Annual Percentage Rate › The APR is the measure of the cost of credit expressed as a yearly rate.  Finance Charge  Finance Charge › The dollar amount you pay to use credit, includes interest costs and all charges associated with the transaction.

5. CREDIT COUNSELING help is here www.creditcards.com CREDIT CARD TERMS 101 CONTINUED  Grace Period or Free Period  Grace Period or Free Period › The grace period is the number of days you have before a credit card company starts charging interest on new purchases. Not all credit cards have a grace period.  Periodic Rate  Periodic Rate › The interest rate the card issuer applies to your outstanding account balance to figure the finance charge for each billing cycle.  Transaction Fees  Transaction Fees › Some credit card issuers charge additional fees: for a cash advance, a late payment or going over your credit limit. Sometimes there is a monthly fee if you did not use the card.

6. CREDIT COUNSELING www.creditcards.com SHOP AROUND…. YOU ARE AN AMERICAN FAMILY DETERMINED TO PAY OFF YOUR $8000 CREDIT CARD DEBT. Interest Rate Minimum Payment Fixed payment Number of Months to pay off Total interest paid on debt of $8000 12%$2000 $250 $500 19%$2000 $250 $500 28%$2000 Minimum payment is not enough to reduce your debt $250 $500 How long will it take? How much interest will you pay? How long will it take? How much interest will you pay?

7. CREDIT COUNSELING www.creditcards.com WHAT IS YOUR LIABILITY TRUTH IN LENDING ACT  Under the Truth in Lending Act › If your credit card is lost or stolen – and then is used by someone without your permission  How much do you have to pay for their charges?  $50.00 › You do not need to buy “credit card insurance” to cover amounts over $50  Under the Truth in Lending Act › If your credit card is lost or stolen – and then is used by someone without your permission  How much do you have to pay for their charges?  $50.00 › You do not need to buy “credit card insurance” to cover amounts over $50

8. CREDIT COUNSELING help is here www.creditcards.com FEDERAL CREDIT BILLING ACT Purpose of Act To make quick corrections of mistakes such as… › A charge for something you did not buy › A bill for an amt different from the actual amt you charged › A charge for something that you did not accept when it was delivered or that was not delivered according to an agreement › Math errors or payments not credited to your account › A charge by someone who does not have permission to use your credit card Purpose of Act To make quick corrections of mistakes such as… › A charge for something you did not buy › A bill for an amt different from the actual amt you charged › A charge for something that you did not accept when it was delivered or that was not delivered according to an agreement › Math errors or payments not credited to your account › A charge by someone who does not have permission to use your credit card

9. CREDIT COUNSELING www.creditcards.com FEDERAL CREDIT BILLING ACT WHAT TO DO Contact the credit card company within 60 days after the statement date Pay all other parts of the bill. You do not have to pay the disputed amount or finance charges associated with it. If there is an error, you do not have to pay anything If there is not an error, company must send you an explanation and statement of the amount your owe. The amount you owe will include finance charges Contact the credit card company within 60 days after the statement date Pay all other parts of the bill. You do not have to pay the disputed amount or finance charges associated with it. If there is an error, you do not have to pay anything If there is not an error, company must send you an explanation and statement of the amount your owe. The amount you owe will include finance charges

10. CREDIT COUNSELING help is here www.creditcards.com CREDIT REPORTS 1.Equifax 2.Trans union 3.Experian 1.Equifax 2.Trans union 3.Experian What’s a credit score? What’s a credit score? Who’s FICO? FICO Who’s FICO? FICO

11. CREDIT COUNSELING www.creditcards.com CREDIT CARDS Are ‘College Kids’ ready for credit cards?College Kids

12. CREDIT COUNSELING help is here www.creditcards.com

13. CREDIT COUNSELING www.creditcards.com CREDIT CARDS USE THEM WISELY!! KNOW THE DEBT WARNING SIGNS