Credit Cards
by Andrew Travis, Dru Carson, Elissa Knopp
and Kaitlin Lalk
History of Credit Cards
Credit cards originally looked like this:
● First made of Celluloid, a form of plastic
● First focused on entertainment charges and travel by businesses
● First bank card "Charg-It," introduced in 1946 by John Biggins
Advantages
Convenience- Credit cards can save you time and trouble
Low-cost loans- Earns bank’s trust with a better credit score
Instant cash- Cash advances are quick and convenient, putting cash
in your hand when you need it
Perks- From frequent flier miles to discounts on automobiles
Purchase protection- Most credit card companies will handle disputes
for you
Disadvantages
Overuse- Revolving credit makes it easy to spend beyond your means
Paperwork- You'll need to save your receipts and check them against your
statement each month
High-cost fees- Your purchase will suddenly become much more
expensive if you carry a balance or miss a payment
Unexpected fees- Typically, you'll pay between 2 and 4 percent just to get
the cash advance; also cash advances usually carry high interest rates
Deepening your debt- Consumers are using credit more than ever before,
If you charge freely, you may quickly find yourself in over your head
Smart and Appropriate Uses
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Method of payment
Earn rewards
Protected by false delivers
Use in moderation
Build a better credit
Pay balances in full
Inappropriate Uses
● Retail therapy- don’t shop because you are bored, find less
expensive ways to cope
● Financing debt- meaning to take out a loan or another credit card
because you feel you are in too much debt
● Utility bills- this will result in excessive interest charges on small
amounts
● Perishable items- these things will depreciate in value and you end
up paying interest on something consumed in a short amount of
time
Media’s Role in Credit Cards
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Shows all the things you can buy if you have a credit card
Makes the commercial funny or makes it more enjoyable to watch
Shows convenience for the credit card
Celebrities are used in commercials to say if they have the card,
you should get it too
Use of Credit Cards by College Students
● 84% of undergraduates had at least one credit card
● $3,173- Average balance carried by college students
● 19%- Seniors who graduate with a balance greater
than $7000
● Act of 2009- Higher barriers to credit approval, no more
freebies, much more difficult for anyone under the age
of 21 to qualify for a credit card
Tips to use a Credit Card wisely
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Wants vs. needs
Pay off balances strategically
Don’t apply for credit you don’t need
Keep your balances low
Works Cited
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"The History of Credit Cards."CreditCardscom News. Web. 10 Dec. 2014. <http://www.creditcards.com/credit-card-news/credit-cards-history1264.php>.
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"Advantages and Disadvantages of Credit Cards - 360 Degrees of Financial Literacy." Advantages and Disadvantages of Credit Cards - 360 Degrees
of Financial Literacy. Web. 12 Dec. 2014.
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"6 Smart Ways to Use a Credit Card - Credit.com." Credit.com. Web. 12 Dec. 2014. <http://blog.credit.com/2014/09/6-smart-ways-to-use-a-creditcard-94782/>.
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"Three Inappropriate Uses of Credit." OpposingViews.com. N.p., n.d. Web. 18 Dec. 2014. <http://www.opposingviews.com/i/three-inappropriate-usesof-credit>.
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"Inappropriate Uses of Credit Cards." EHow. Demand Media, 15 July 2010. Web. 18 Dec. 2014. <http://www.ehow.com/list_6738437_inappropriateuses-credit-cards.html>.
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"Social Media Plays Big Role in Attracting Youth to Credit Card Programs." Sterling Payment Technologies RSS. N.p., n.d. Web. 18 Dec. 2014.
<https://www.sterlingpayment.com/news/industry-news/merchant-processing-industry/social-media-plays-big-role-in-attracting-youth-to-credit-cardprograms/>.
Works Cited Continued
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"College Students and Credit Cards – Some Statistics." College Students and Credit Cards – Some Statistics. N.p., n.d.
Web. 17 Dec. 2014. <http://www.collegeparents.org/members/resources/articles/college-students-and-credit-cards%E2%80%93-some-statistics>
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"Students, Credit Cards and the New Reform Law: The Fine Print." CreditCardscom News. N.p., n.d. Web. 17 Dec. 2014.
<http://www.creditcards.com/credit-card-news/college-student-credit-card-law-1279.php>
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"10 Ways to Use Credit Cards Wisely." Woman's Day. N.p., n.d. Web. 18 Dec. 2014.
<http://www.womansday.com/life/saving-money/10-ways-to-use-credit-cards-wisely-82969>
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"Using Credit Wisely - Fidelity Investments." Using Credit Wisely - Fidelity Investments. N.p., 04 Dec. 2014. Web. 18 Dec.
2014. <https://www.fidelity.com/viewpoints/personal-finance/credit-cards>