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Credit Cards

Credit Cards. Plastic Money!. Credit Cards. 90% of credit card purchases are impulse purchases! Only 54% of card owners pay off their balances each month!. Types of Cards. Charge Cards No pre-set spending limit Must be paid in full each month American Express Credit Cards

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Credit Cards

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  1. Credit Cards

    Plastic Money!
  2. Credit Cards 90% of credit card purchases are impulse purchases! Only 54% of card owners pay off their balances each month!
  3. Types of Cards Charge Cards No pre-set spending limit Must be paid in full each month American Express Credit Cards Pre-set spending limit Allow you to carry a balance As long as you pay the minimum monthly payment VISA, Mastercard
  4. Credit Cards - Interest Rates vary on different cards Range from 15% - 25% annually Interest charged daily Daily rate = annual rate divided by 365 Charged on all balances after due date Interest is backdated to the date of purchase
  5. Credit Cards - Interest Interest is charged on cash advances immediately No grace period, interest accumulates immediately
  6. Credit Cards – Days Late Be careful calculating the number of days late… Example A Purchase made on December 3rd – not paid until January 5th. How many days in December didn’t you have it? 2 Days in December = 31 -2 = 29 How many days in January did you have it? 5 Total = 29 + 5 = 34 days
  7. Credit Cards Example Monica makes a $400 purchase on her VISA on January 5th. She receives her statement on the 20th, but does not pay it. Her next statement arrives on February 20th. Calculate the interest she is charged if her annual interest rate is 21%.
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