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CREDIT CARDS

CREDIT CARDS WHAT THEY ARE AND HOW THEY WORK WHAT IS A CREDIT CARD A CREDIT CARD ACCOUNT ALLOWS YOU TO PURCHASE GOODS OR SERVICES WITHOUT PAYMANT AT THE TIME OF PURCHASE “BUY NOW, PAY LATER” WHY DO I NEED A CREDIT CARD? EASY TO USE NEARLY ALL BUSINESS EXCEPT THEM

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CREDIT CARDS

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  1. CREDIT CARDS WHAT THEY ARE AND HOW THEY WORK

  2. WHAT IS A CREDIT CARD • A CREDIT CARD ACCOUNT ALLOWS YOU TO PURCHASE GOODS OR SERVICES WITHOUT PAYMANT AT THE TIME OF PURCHASE • “BUY NOW, PAY LATER”

  3. WHY DO I NEED A CREDIT CARD? • EASY TO USE • NEARLY ALL BUSINESS EXCEPT THEM • SOME BUSINESS REQUIRE THEM • SAFE TO USE

  4. TYPES OF CREDIT CARDS • BANK CARDS: ISSUED BY A BANK, USED TO MAKE PURCHASES VIRTUALLY ANYWHERE. EXAMPLES INCLUDE: VISA, MASTERCARD, DISCOVER, AND AMERICAN EXPRESS • STORE CARDS: ISSUED BY A COMPANY TO MAKE PURCHASES AT A SPECIFIC STORE. EXAMPLES INCLUDE: SEARS, JCPENNY, EXXON, LOWES, ETC.

  5. HOW IS A CREDIT CARD USED • THE CARD IS USED TO “CHARGE” A PURCHASE TO THE CREDIT CARD ACCOUNT • A MONTHLY STATEMENT SHOWS ALL CHARGES MADE TO THE ACCOUNT AND THE BALANCE DUE. • PAY THE BALANCE EACH MONTH

  6. PAY IN FULL NO FINANCE CHARGES APPLY THE CARD ISSUER DOES NOT MAKE ANY ADDITIONAL MONEY FROM YOU PAY PART OF THE BALANCE FINANCE CHARGES WILL BE ASSESSED TO THE NEXT STATEMENT THE CARD ISSUER GETS ADDITIONAL MONEY FROM YOU PAYING THE BALANCETWO CHOICES

  7. WHAT IS A FINANCE CHARGE? • A FINANCE CHARGE IS A PENALTY ASSESSED TO YOU FOR NOT PAYING YOUR ACCOUNT BALANCE IN FULL • IT CAN RANGE FROM 6% TO 25% APR OF YOUR UNPAID BALANCE • FINANCE CHARGES CAUSE YOU TO PAY MORE FOR AN ITEM THAN THE ORIGINAL COST

  8. HOW CAN I USE A CREDIT CARD RESPONSIBLY? • DON’T CHARGE MORE THAN YOU CAN AFFORD TO PAY • PAY YOUR BILL IN FULL EACH MONTH • IF YOUR BALANCE GETS TOO LARGE TO PAY IN ONE MONTH, QUIT USING THE CARD UNTIL THE BALANCE IS PAID DOWN

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