Reflection #

Credit Card

© Family Economics & Financial Education –Updated March 2010– Credit Unit – Understanding a Credit CardFunded 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

Credit Card1.4.1.G1

Reflection #

If, with all the advantages I’ve had, I cant make a living, I’m just no good, I guess.” Do you agree

with this statement? Why or why not?(3-5 sentences)

Bell QuizDay 1 Financial Institutions

You have 5 minutes! Play $ songs during this

time!

Credit Card


of Arizona

Credit Card1.4.1.G1

Class Assignment 2: Managing a Checking Account

Using your checks and deposit slips on (page), make the following banking transactions and record them on the check register (page ) in order. Today fill out:

3. February 4- write check #102 to Super Fresh Market for groceries in the amount of $76.54.

4. February 6- write check #103 to Jim’s Gad Station for $22.00 for gas and oil.

5. February 8- Deposit: Checks #828 for $328.00, #368 fir $175.80 and #4658 fir $132.00.

Credit Card


of Arizona

Credit Card1.4.1.G1

Songs about

1. What do you believe is the overall meaning or purpose of the song?

2. What do the lyrics of the song mean to you?

3. How do you believe the lyrics relate to our current society?

The Facts on CreditThose who are wise never pay interest… they earn it!

Borrow $200.00

SummaryA 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

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 errorsConsumers have many

protections and rights in regards to credit card use

Credit Card

Understanding Your Credit Card TERMS

Credit UnitTake Charge of Your

Finances Its Knot Easy TJ SMATT 129

If school performance was used to determine credit

worthiness, how would you do?

Questions1. Number of times you have missed class this quarter?2. Number of times you have been tardy this quarter?3. How many times you have turned in late assignments

this quarter?4. How many times you have turned in incomplete

assignments this quarter?5. How many times you have not turned in an

assignment at all this quarter?6. How many times you have been asked by the teacher

to change or improve your behavior in class this quarter?

7. How many times you have forgotten to bring the required materials (textbook, pencil, etc.) to class this quarter?

Total the numbers from your answers!

RESULTS SAY: 4 or Less = Credit Approved!

5 - 7 = Need Cosigner8 or More = Credit Denied!

TransactionsReference Number

Trans Date

Post Date

Description of Transaction or Credit Amount

XXXX1 2/22 2/23 Store #1 $529.57XXXX2 2/25 2/26 Payment $450.00 -XXXX3 2/26 2/26 Cash Advance $318.00XXXX4 3/15 3/17 Balance Transfer $785.00

FeesXXXX5 2/23 2/23 Late Fee $35.00XXXX6 2/27 2/27 Balance Transfer Fee $23.55XXXX7 2/28 2/28 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 InformationNew Balance $1784.53Minimum Payment Due $53.00Payment Due Date 4/20/12Late 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 CalculationType of Balance Annual Percentage Rate

(APR)Balance Subject to Interest

Rate Interest ChargePurchases 14.99% $512.14 $6.31Cash Advances 21.99% $253.50 $4.58Balance Transfers 0.00% $637.50 $0.00

Summary of Account Activity

Previous Balance 535.07Payments -450.00Purchases +529.57Balance Transfers +785.00Cash Advances +318.00Past Due Amount +0.00Fees Charged +69.45Interest Charged +10.89New Balance $1,784.53 Credit Limit $2,000.00Available credit $215.47Statement closing date

3/22/2012

Days in billing cycle 30

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

$62 3 years $2,232

Notice of Changes to Your Interest RatesYou 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 hose transactions as well.

Important Changes to Your Account TermsThe 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-DateTotal fees charged in 2012 $90.14Total interest charged in 2012 $18.27

Andrew’s Credit Card Statement


This section includes payments, credits, purchases, balance

transfers, cash advances, fees, interest charges,

amounts past due, the new balance, available credit, and the last day

of the billing periodHow much did Andrew charge in new purchases

during this credit card billing cycle?$529.57

10

9

8

7

6

2

4

5

1 3


Trans Date

Post Date











3/22/2012





about…




$62 3 years $2,232





10

9

8

7

6

2

4

5

1 3Payment InformationThis section includes

the total new balance, the minimum payment amount, and the date

payment is due

What is Andrew’s minimum payment due for

this billing cycle?$53.00


Trans Date

Post Date











3/22/2012





about…




$62 3 years $2,232





10

9

8

7

6

2

4

5

1 3Late Payment Warning

This section states any additional fees and the

higher interest rate that may be charged if

a payment is lateHow much is Andrew’s

late payment fee?$35


Trans Date

Post Date











3/22/2012





about…




$62 3 years $2,232





10

9

8

7

6

2

4

5

1 3

Minimum Payment Warning

This section includes an estimate of how

long it can take to pay off a credit card

balance if only the minimum payment is

made each month, and an estimate of the total amount paid, including

interest, if the bill is paid in three years

(assuming no additional charges are

made)How long will it take

Andrew to pay off the balance of his credit card if he only pays the minimum

payment?10 years


Trans Date

Post Date











3/22/2012





about…




$62 3 years $2,232





10

9

8

7

6

2

4

5

1 3Notice of Changes to Your Interest RatesIf a cardholder triggers the Penalty APR, the

credit card issuer must notify them on their statement 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.


Trans Date

Post Date











3/22/2012





about…




$62 3 years $2,232





10

9

8

7

6

2

4

5

1 3

Important Changes to Your Account

TermsIn this section of the

statement, cardholders must be notified of any raise in rates or fees or

any other significant changes to the accountOther than implementation

of the Penalty APR, will there be any other

changes to Andrew’s account terms?

Yes, his APR for Purchases is increasing

to 16.99%.


Trans Date

Post Date











3/22/2012





about…




$62 3 years $2,232





10

9

8

7

6

2

4

5

1 3

TransactionsThis section includes a

list of all the transactions that have occurred since the last statement (purchases,

payments, credits, cash advances, and

balance transfers). This section should be

carefully reviewed by the cardholder to

ensure there are no unauthorized charges

or errorsHow much did Andrew charge on his credit card

to Store #1?$529.57


Trans Date

Post Date











3/22/2012





about…




$62 3 years $2,232





10

9

8

7

6

2

4

5

1 3Fees and Interest

ChargedCredit card issuers

must list the fees and interest charges

separately on the monthly statement.

Interest charges must be listed by type of

transactionDid Andrew pay a late fee?Yes, he paid $35.00 for

a late fee.


Trans Date

Post Date











3/22/2012





about…




$62 3 years $2,232





10

9

8

7

6

2

4

5

1 3Year-to-Date TotalsThe total amount paid

in fees and interest charges for the current year must be shown on

the statement

What is the total amount of interest Andrew has paid in the year 2012?$18.27


Trans Date

Post Date











3/22/2012





about…




$62 3 years $2,232





10

9

8

7

6

2

4

5

1 3

Interest Charge Calculation

This section includes a summary of the

interest rates on the different types of

transactions, account balances, the amount

of each, and the interest charged for

each type of transaction What interest rate is

Andrew paying on cash advances?21.99%

Comparison Shopping for a Credit Card

Using the comparison shopping for a credit card worksheet compare 3 credit card offers and select the credit card based upon the applications that is best.

Card 1Card 3

Card 2

Reflection #

Documents

credit cardfunded

credit cardcredit

credit worthiness

credit card useunderstanding

summarya credit card

montha credit card

best credit card

preapproved credit