ABCs of Credit Cards: Costs, Behaviors, and Choosing Wisely

1. April 25, 2014 • Entry task: What does APR stand for? What does it mean? • Target: Select a credit card based on terms and conditions.

2. Tip of the Day!

3. Today • Finish ABC’s of Credit Worksheet • About 20 minutes to finish?? • Go over Credit PowerPoint

4. April 28, 2014 • Entry task: Describe what you should look for in a credit card. • Target: Select a credit card based on terms and conditions.

7. The ABCs ofCredit Card FinanceEssential Facts for Students 2005 – 2006 Carol A. Carolan, Ph.D.

8. Essential Facts … Two Groups of Information • Credit Card Costs • Credit Card Behaviors 2

9. Credit Card Costs 3

10. Annual Fees • Interest Annual Percentage Rate (APR) • Cash Advances • Convenience Checks • Penalty Rates 4

11. Low Interest Teaser Rates • Balance Transfers • Late Fees • Over Credit Limit Fees • Bounced Check Fees • Currency Conversion Fees 5

12. Choosing aCredit Card 6

13. Look For: • A Low Annual Percentage Rate (APR) • No Annual Fee • A Long Grace Period • Low Penalty Rates 7

14. Types of Credit Card Users • Convenience Users • “Revolvers” 8

15. Dos and Don’ts 9

16. One Card • Student Loans for Tuition • Wants vs. Needs • Convenience • Pay More Than the MMP • Be a Manager 10

17. Don’t Skip Payments • Pay on Time • Don’t Exceed Your Credit Limit • Cash Advances • Convenience Checks • Be Wary of Teaser Rates 11

18. Credit Card Shuffle • Low Credit Limit • Quickly Mail Payments • Save Receipts • Change of Address • Lost and Stolen Cards 12

19. Beware of credit schemes • ZERO DOWN, ZERO INTEREST, NO PAYMENTS UNTIL 2016! • Interest can still get you! 12

20. There’s Alwaysa Solution 13

21. Getting Out of Debt • Don’t Deny the Problem • Stop Using Your Card • Contact Your Credit Card Issuer • Get a Job • Reduce Expenses • Talk about Your Problems • Debt Consolidation 14

22. Credit Reports& Credit Scores 15

23. Credit Report • Collection of Information • Financial Report Card • Lenders Use this Information • 3 Main Credit Reporting Agencies • Regularly Review Your Credit Reports 16

24. Credit Score • Numeric Value Applied to a Credit Report • Usually Called a FICO Score • Higher is Better 17

25. What Goes Into OurCredit Scores? • Pay Bills on Time • Unresolved Debt • Number of Cards and Their Balances • How Long • Quest for New Credit 18

26. Consequences of IrresponsibleCredit Card Use 19

27. Denial of Credit • High Interest Rates • Difficulty Renting an Apartment • Denied Employment • Graduate School Rejection • Higher Insurance Premiums • Big Bucks for Cell Phones 20

28. Identity Theft 21

29. Signs of Identity Theft • Card/Statement Not Requested • Statement Not Received • Unauthorized Charges • Denied Credit • Debt Collectors 22

30. Minimize the Risk… • Keep Personal Information Personal • Don’t Use Social Security Number • Leave Social Security Card Home • Carry Only What’s Needed • Photo ID Credit Card • Know Your Billing Cycles 23

31. Shred Receipts • Use the Post Office • Creative Passwords • Purchase on Secure Websites • Keep Personal Information Safe • Review Credit Reports • Computer Virus Protection 24

32. Victims of Identity Theft Should… • Contact the Big Three • Experian • Equfax • Transunion • Fraud Alert • Order Free Credit Reports & Review • Call Fraud Departments • Close Fraudulent Accounts • File a Police Report • Contact the FTC 25

33. Identity Theft Video