1. 7.4.2.G1 © Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding Your Credit Card Essentials – Slide # 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Credit Card Statements Outline important information about the card The 2009 CARD Act required credit card companies to include specific information about a card account in the statement Andrew’s Credit Card Statement Please help Andrew interpret his credit card statement

2. © Family Economics & Financial Education –July 2010 – The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona 7.4.2.G1 Transactions Reference NumberTrans DatePost DateDescription of Transaction or CreditAmount XXXX12/222/23Store #1$529.57 XXXX22/252/26Payment$450.00 - XXXX32/26 Cash Advance$318.00 XXXX43/153/17Balance Transfer$785.00 Fees XXXX52/23 Late Fee$35.00 XXXX62/27 Balance Transfer Fee$23.55 XXXX72/28 Cash Advance Fee$10.90 Total Fees for this Period$69.45 Interest Charged Interest Charge on Purchases$6.31 Interest Charge on Cash Advances$4.58 Total Interest for this Period$10.89 Payment Information New Balance$1784.53 Minimum Payment Due$53.00 Payment Due Date4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation Type of BalanceAnnual Percentage Rate (APR)Balance Subject to Interest RateInterest Charge Purchases14.99%$512.14$6.31 Cash Advances21.99%$253.50$4.58 Balance Transfers0.00%$637.50$0.00 Summary of Account Activity Previous Balance535.07 Payments-450.00 Purchases+529.57 Balance Transfers+785.00 Cash Advances+318.00 Past Due Amount+0.00 Fees Charged+69.45 Interest Charged+10.89 New Balance$1,784.53 Credit Limit$2,000.00 Available credit$215.47 Statement closing date3/22/2012 Days in billing cycle30 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 10 years$3,284 $623 years$2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, APR for Purchases will increase to 16.99%. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. 2012 Totals Year-to-Date Total fees charged in 2012$90.14 Total interest charged in 2012$18.27 Andrew’s Credit Card Statement Summary of Account Activity Payment and credit amounts Purchase totals Balance transfer and cash advance totals Fee and interest charges Amount past due New balance Available credit How much did Andrew charge in new purchases during this credit card billing cycle? $529.57 10 9 8 7 6 5 4 3 2 1

3. © Family Economics & Financial Education –July 2010 – The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona 7.4.2.G1 Transactions Reference NumberTrans DatePost DateDescription of Transaction or CreditAmount XXXX12/222/23Store #1$529.57 XXXX22/252/26Payment$450.00 - XXXX32/26 Cash Advance$318.00 XXXX43/153/17Balance Transfer$785.00 Fees XXXX52/23 Late Fee$35.00 XXXX62/27 Balance Transfer Fee$23.55 XXXX72/28 Cash Advance Fee$10.90 Total Fees for this Period$69.45 Interest Charged Interest Charge on Purchases$6.31 Interest Charge on Cash Advances$4.58 Total Interest for this Period$10.89 Payment Information New Balance$1784.53 Minimum Payment Due$53.00 Payment Due Date4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation Type of BalanceAnnual Percentage Rate (APR)Balance Subject to Interest RateInterest Charge Purchases14.99%$512.14$6.31 Cash Advances21.99%$253.50$4.58 Balance Transfers0.00%$637.50$0.00 Summary of Account Activity Previous Balance535.07 Payments-450.00 Purchases+529.57 Balance Transfers+785.00 Cash Advances+318.00 Past Due Amount+0.00 Fees Charged+69.45 Interest Charged+10.89 New Balance$1,784.53 Credit Limit$2,000.00 Available credit$215.47 Statement closing date3/22/2012 Days in billing cycle30 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 10 years$3,284 $623 years$2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, APR for Purchases will increase to 16.99%. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. 2012 Totals Year-to-Date Total fees charged in 2012$90.14 Total interest charged in 2012$18.27 Andrew’s Credit Card Statement 10 9 8 7 6 5 4 3 2 1 Payment Information Includes: Total new balance Minimum payment amount Date payment is due Payment due dates must be consistent month to month Monthly statements must be sent at least 21 days before a credit card payment is due What is Andrew’s minimum payment due for this billing cycle? $53.00

4. © Family Economics & Financial Education –July 2010 – The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona 7.4.2.G1 Transactions Reference NumberTrans DatePost DateDescription of Transaction or CreditAmount XXXX12/222/23Store #1$529.57 XXXX22/252/26Payment$450.00 - XXXX32/26 Cash Advance$318.00 XXXX43/153/17Balance Transfer$785.00 Fees XXXX52/23 Late Fee$35.00 XXXX62/27 Balance Transfer Fee$23.55 XXXX72/28 Cash Advance Fee$10.90 Total Fees for this Period$69.45 Interest Charged Interest Charge on Purchases$6.31 Interest Charge on Cash Advances$4.58 Total Interest for this Period$10.89 Payment Information New Balance$1784.53 Minimum Payment Due$53.00 Payment Due Date4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation Type of BalanceAnnual Percentage Rate (APR)Balance Subject to Interest RateInterest Charge Purchases14.99%$512.14$6.31 Cash Advances21.99%$253.50$4.58 Balance Transfers0.00%$637.50$0.00 Summary of Account Activity Previous Balance535.07 Payments-450.00 Purchases+529.57 Balance Transfers+785.00 Cash Advances+318.00 Past Due Amount+0.00 Fees Charged+69.45 Interest Charged+10.89 New Balance$1,784.53 Credit Limit$2,000.00 Available credit$215.47 Statement closing date3/22/2012 Days in billing cycle30 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 10 years$3,284 $623 years$2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, APR for Purchases will increase to 16.99%. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. 2012 Totals Year-to-Date Total fees charged in 2012$90.14 Total interest charged in 2012$18.27 Andrew’s Credit Card Statement 10 9 8 7 6 5 4 3 2 1 Late Payment Warning States what will happen if a payment is late- usually additional fees and a higher interest rate Minimum Payment Warning Estimate of how long it can take to pay off a credit card balance if only the minimum payment is made each month How long will it take Andrew to pay off the balance of his credit card if he only pays the minimum payment? 10 years

5. © Family Economics & Financial Education –July 2010 – The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona 7.4.2.G1 Transactions Reference NumberTrans DatePost DateDescription of Transaction or CreditAmount XXXX12/222/23Store #1$529.57 XXXX22/252/26Payment$450.00 - XXXX32/26 Cash Advance$318.00 XXXX43/153/17Balance Transfer$785.00 Fees XXXX52/23 Late Fee$35.00 XXXX62/27 Balance Transfer Fee$23.55 XXXX72/28 Cash Advance Fee$10.90 Total Fees for this Period$69.45 Interest Charged Interest Charge on Purchases$6.31 Interest Charge on Cash Advances$4.58 Total Interest for this Period$10.89 Payment Information New Balance$1784.53 Minimum Payment Due$53.00 Payment Due Date4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation Type of BalanceAnnual Percentage Rate (APR)Balance Subject to Interest RateInterest Charge Purchases14.99%$512.14$6.31 Cash Advances21.99%$253.50$4.58 Balance Transfers0.00%$637.50$0.00 Summary of Account Activity Previous Balance535.07 Payments-450.00 Purchases+529.57 Balance Transfers+785.00 Cash Advances+318.00 Past Due Amount+0.00 Fees Charged+69.45 Interest Charged+10.89 New Balance$1,784.53 Credit Limit$2,000.00 Available credit$215.47 Statement closing date3/22/2012 Days in billing cycle30 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 10 years$3,284 $623 years$2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, APR for Purchases will increase to 16.99%. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. 2012 Totals Year-to-Date Total fees charged in 2012$90.14 Total interest charged in 2012$18.27 Andrew’s Credit Card Statement 10 9 8 7 6 5 4 3 2 1 Notice of Changes to Your Interest Rates If a cardholder triggers the Penalty APR, they must be notified that their rates will be increasing Has Andrew triggered the Penalty APR? Yes, he will pay 28.99% on all transactions made after 4/9/12.

6. © Family Economics & Financial Education –July 2010 – The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona 7.4.2.G1 Transactions Reference NumberTrans DatePost DateDescription of Transaction or CreditAmount XXXX12/222/23Store #1$529.57 XXXX22/252/26Payment$450.00 - XXXX32/26 Cash Advance$318.00 XXXX43/153/17Balance Transfer$785.00 Fees XXXX52/23 Late Fee$35.00 XXXX62/27 Balance Transfer Fee$23.55 XXXX72/28 Cash Advance Fee$10.90 Total Fees for this Period$69.45 Interest Charged Interest Charge on Purchases$6.31 Interest Charge on Cash Advances$4.58 Total Interest for this Period$10.89 Payment Information New Balance$1784.53 Minimum Payment Due$53.00 Payment Due Date4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation Type of BalanceAnnual Percentage Rate (APR)Balance Subject to Interest RateInterest Charge Purchases14.99%$512.14$6.31 Cash Advances21.99%$253.50$4.58 Balance Transfers0.00%$637.50$0.00 Summary of Account Activity Previous Balance535.07 Payments-450.00 Purchases+529.57 Balance Transfers+785.00 Cash Advances+318.00 Past Due Amount+0.00 Fees Charged+69.45 Interest Charged+10.89 New Balance$1,784.53 Credit Limit$2,000.00 Available credit$215.47 Statement closing date3/22/2012 Days in billing cycle30 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 10 years$3,284 $623 years$2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, APR for Purchases will increase to 16.99%. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. 2012 Totals Year-to-Date Total fees charged in 2012$90.14 Total interest charged in 2012$18.27 Andrew’s Credit Card Statement 10 9 8 7 6 5 4 3 2 1 Important Changes to Your Account Terms Cardholders must be notified of any raise in rates or fees or any other significant changes to the account at least 45 days before the changes take effect Any changes can only apply to future transactions (new charges) Consumer has the option of closing the account before the changes go into effect

7. © Family Economics & Financial Education –July 2010 – The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona 7.4.2.G1 Transactions Reference NumberTrans DatePost DateDescription of Transaction or CreditAmount XXXX12/222/23Store #1$529.57 XXXX22/252/26Payment$450.00 - XXXX32/26 Cash Advance$318.00 XXXX43/153/17Balance Transfer$785.00 Fees XXXX52/23 Late Fee$35.00 XXXX62/27 Balance Transfer Fee$23.55 XXXX72/28 Cash Advance Fee$10.90 Total Fees for this Period$69.45 Interest Charged Interest Charge on Purchases$6.31 Interest Charge on Cash Advances$4.58 Total Interest for this Period$10.89 Payment Information New Balance$1784.53 Minimum Payment Due$53.00 Payment Due Date4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation Type of BalanceAnnual Percentage Rate (APR)Balance Subject to Interest RateInterest Charge Purchases14.99%$512.14$6.31 Cash Advances21.99%$253.50$4.58 Balance Transfers0.00%$637.50$0.00 Summary of Account Activity Previous Balance535.07 Payments-450.00 Purchases+529.57 Balance Transfers+785.00 Cash Advances+318.00 Past Due Amount+0.00 Fees Charged+69.45 Interest Charged+10.89 New Balance$1,784.53 Credit Limit$2,000.00 Available credit$215.47 Statement closing date3/22/2012 Days in billing cycle30 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 10 years$3,284 $623 years$2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, APR for Purchases will increase to 16.99%. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. 2012 Totals Year-to-Date Total fees charged in 2012$90.14 Total interest charged in 2012$18.27 Andrew’s Credit Card Statement 10 9 8 7 6 5 4 3 2 1 Transactions Includes a list of all the transactions that have occurred since the last statement Should be reviewed for errors Fees and Interest Charged Must list the fees and interest charges separately on the monthly statement Did Andrew pay a late fee? Yes, he paid $35.00 for a late fee.

8. © Family Economics & Financial Education –July 2010 – The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona 7.4.2.G1 Transactions Reference NumberTrans DatePost DateDescription of Transaction or CreditAmount XXXX12/222/23Store #1$529.57 XXXX22/252/26Payment$450.00 - XXXX32/26 Cash Advance$318.00 XXXX43/153/17Balance Transfer$785.00 Fees XXXX52/23 Late Fee$35.00 XXXX62/27 Balance Transfer Fee$23.55 XXXX72/28 Cash Advance Fee$10.90 Total Fees for this Period$69.45 Interest Charged Interest Charge on Purchases$6.31 Interest Charge on Cash Advances$4.58 Total Interest for this Period$10.89 Payment Information New Balance$1784.53 Minimum Payment Due$53.00 Payment Due Date4/20/12 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35 fee and your APR’s may be increased up to the Penalty rate of 28.99% Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example… Interest Charge Calculation Type of BalanceAnnual Percentage Rate (APR)Balance Subject to Interest RateInterest Charge Purchases14.99%$512.14$6.31 Cash Advances21.99%$253.50$4.58 Balance Transfers0.00%$637.50$0.00 Summary of Account Activity Previous Balance535.07 Payments-450.00 Purchases+529.57 Balance Transfers+785.00 Cash Advances+318.00 Past Due Amount+0.00 Fees Charged+69.45 Interest Charged+10.89 New Balance$1,784.53 Credit Limit$2,000.00 Available credit$215.47 Statement closing date3/22/2012 Days in billing cycle30 If you make no additional charges using this card and each month you pay… You will pay off the balance shown on this statement in about… And you will end up paying an estimated total of… Only the minimum payment 10 years$3,284 $623 years$2,232 Notice of Changes to Your Interest Rates You have triggered the Penalty APR of 28.99%. This change will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, the Penalty APR will apply to these transactions. We may keep the APR at this level indefinitely. Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If you become more than 60 days late on your account, the Penalty APR will apply to those transactions as well. Important Changes to Your Account Terms The following is a summary of changes that are being made to your account terms. For more detailed information, please refer to the booklet enclosed with this statement. These changes will impact your account as follows: Transactions made on or after 4/9/12: As of 5/10/12, APR for Purchases will increase to 16.99%. Transactions made before 4/9/12: Current APRs will continue to apply to these transactions. 2012 Totals Year-to-Date Total fees charged in 2012$90.14 Total interest charged in 2012$18.27 Andrew’s Credit Card Statement 10 9 8 7 6 5 4 3 2 1 Year-to-Date Totals Total amount paid in fees and interest charges for the current year What is the total amount of interest Andrew has paid in the year 2012? $18.27 Interest Charge Calculation Includes a summary of the the different types of transactions Why is it important to understand how to read a credit card statement?

9. 7.4.2.G1 © Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding Your Credit Card Essentials – Slide # 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Truth in Lending Act Limits liability for unauthorized credit card charges to $50.00 per card Must write a letter within 60 days of the first bill containing the error If a credit card number is used fraudulently but the card itself was not used, the individual has no personal liability

10. 7.4.2.G1 © Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding Your Credit Card Essentials – Slide # 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Summary A credit card is pre-approved credit which can be used for the purchase of goods and services now and payment of them later To avoid paying interest on a credit card, pay the balance in full every month A credit card can have a positive or a negative impact on an individual’s credit history

11. 7.4.2.G1 © Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding Your Credit Card Essentials – Slide # 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Summary Credit card companies are required to disclose the terms and fees of a credit card in the Schumer’s box Credit card statements outline important information about a credit card and should be checked carefully for errors Consumers have many protections and rights in regards to credit card use