2.6.3.G1
Understanding Credit
Cards
Advanced Level
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 1
Funded 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
2.6.3.G1
Good Morning! 4/9/14
• Today’s Agenda:
– Tax and Insurance Quizzes back – let’s review
– Credit Cards
– Notes and comparing offers
• Friday:
– Quiz on Credit – all 3 days of information – make sure you study!!!
– EverFi module Payments Interest and Credit Cards is due!!!
– Lose 10% each school day it’s late
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 2
Funded 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
2.6.3.G1
What is a Credit Card?
Credit card - a
plastic card that you
can use to access a
line of credit that
has been
established in
advance
A person can borrow
up to an established
credit limit.
Credit limit –
maximum dollar
amount that can be
borrowed.
Is a credit card open-end or closed-end credit?
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 3
Funded 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
2.6.3.G1
Credit Card Interest
Interest is charged each month the
balance is not paid in full
Rate at which interest is charged is
referred to as:
Annual Percentage Rate (APR)
The cost of credit expressed as
a yearly interest rate
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 4
Funded 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
2.6.3.G1
Minimum Payment
A minimum payment is due each
month the card has a balance
To prepare for her first semester of college, Miranda purchased a new computer for
$1,000 and textbooks for $500, spending a total of $1,500 on her credit card charging
15% APR. How much would Miranda pay in interest if she makes the minimum payment?
Payment Made
Time to pay off
card
Total amount of
interest paid
Total amount
paid
Full Payment
$1,500
1 month
$0
$1,500
Partial Payment
$135
1 year
$125
$1,625
Minimum
Payment
$30
11 years
$1,413
$2,913
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 5
Funded 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
2.6.3.G1
Credit Card = Helpful Financial Management Tool
…if managed responsibly
Develop
positive credit
history
Convenient
payment tool
Credit card
safer for online
shopping
Protected from
unauthorized
charges
Credit card
bonuses
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 6
Funded 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
Develop a Positive
Credit History
Credit card use can have a
positive or negative impact
on your credit history
2.6.3.G1
Follow these positive behaviors:
Pay credit card
balances in full
every month
Pay credit card
bills on time
Be conscious of
how credit cards
affect your credit
history
Check the
monthly credit
card statement
for errors
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 7
Funded 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
2.6.3.G1
Convenient Payment Tool
No need to carry
large amounts of cash
How is a
credit card a
convenient
payment tool?
Useful in emergencies
Often required to
hold a reservation
Be conscientious of all
credit card purchases to
not overspend!
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 8
Funded 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
2.6.3.G1
Protect Yourself from
Unauthorized Charges
Report lost or stolen
cards immediately!
Maximum Liability
$50
Unauthorized use
Check your
statements monthly!
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 9
Funded 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
$0
If a lost credit card
is reported before
it is fraudulently
used
If the credit card
number is used
fraudulently, but the
credit card itself is not
used
2.6.3.G1
Safer Online Shopping
What is the
difference
between a credit
card and a debit
card?
More
protection
against fraud
Credit cards
are safer
than debit
cards
Less liability
for
unauthorized
credit card
charges
Money is not
connected to
depository
institution
account
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 10
Funded 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
Should you choose “debit” or “credit” at a point of
sale (POS)?
A receipt must be signed
(optional if purchase is under $25)
If you pick “credit”
Potential benefit: Extra liability
protection from fraudulent charges
Point of
Sale
Must enter the card’s personal
identification number (PIN)
If you pick “debit”
Potential benefit: Option to withdraw
cash from your depository institution
account for no fee
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 11
Funded 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
2.6.3.G1
2.6.3.G1
Additional Benefits
May charge
additional fees or
higher interest rates
Carefully evaluate if
the benefits
outweigh the cost
Cash
rebates
Rewards,
Rewards,
Rewards…
Airline
miles
Warranties
for items
purchased
Travel
insurance
Would you be willing to pay higher/additional
fees or higher interest rates to
obtain credit card benefits? Explain.
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 12
Funded 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
2.6.3.G1
Credit Cards
Advantages & Disadvantages
How many
advantages
can you think
of?
How many
disadvantages
can you think
of?
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 13
Funded 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
2.6.3.G1
Credit Cards
Advantages & Disadvantages
•
•
•
•
•
•
•
•
Convenient payment tool
Useful for emergencies
Often required to hold a reservation
Able to purchase “big ticket” items
and spread out payments
Protection against fraud
Opportunity to establish a positive
credit history
Online shopping is safer than using a
debit card
Possibility of receiving bonuses
• Interest can be costly when a balance is
revolved
• Additional penalty fees may apply
• Tempting to overspend
• If not used responsibly, it will have a
negative impact on your credit score
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 14
Funded 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
2.6.3.G1
Credit Card Offers
Credit card issuers are required to disclose the terms
and fees of credit cards in an easy to read box format
Called the Schumer Box
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 15
Funded 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
2.6.3.G1
Interest Rates and Interest Charges
Credit cards may
charge many different
types of interest rates
Annual Percentage Rate (APR) for
Purchases
• Interest rate paid for purchases
• Multiple interest rates may be
listed
o final interest rate may
depend on creditworthiness
of applicant
Annual Percentage Rate
(APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime
Rate.
APR for Balance Transfers
15.99%

This APR will vary with the market based on the Prime Rate
21.99%

This APR will vary with the market based on the Prime Rate
28.99%
This APR may be applied to your account if you:
1.
Make a late payment;
2.
Go over your credit limit;
3.
Make a payment that is returned; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will
apply until you make six consecutive minimum payments when due.
APR for Cash Advances
Penalty APR and When it
Applies
How to Avoid Paying
Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on
purchases if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from
the Federal Reserve Board
To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal
Reserve Board at http://www.federalreserve.gov/creditcard
Set-up and Maintenance
Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will
reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit
limit of $250, initial available credit will be only about $209.

Annual Fee: $20

Account Set-up Fee: $20 (one-time fee)

Participation Fee: $12 annually ($1 per month)

Additional Card Fee: $5 annually (if applicable)
Transaction Fees

Fees
Penalty Fees


Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee:
$100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars



Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your
bill
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 16
Funded 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
2.6.3.G1
Introductory Rate
• Introductory rate: APR that may
be charged (usually increased)
after the introductory period ends
• Not all credit cards have an
introductory rate
Interest Rates and Interest Charges
Annual Percentage Rate
(APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%

This APR will vary with the market based on the Prime Rate
21.99%

This APR will vary with the market based on the Prime Rate
28.99%
This APR may be applied to your account if you:
1.
Make a late payment;
2.
Go over your credit limit;
3.
Make a payment that is returned; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply
until you make six consecutive minimum payments when due.
APR for Cash Advances
Penalty APR and When it
Applies
How to Avoid Paying
Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases
if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal
Federal Reserve Board
Reserve Board at http://www.federalreserve.gov/creditcard
Fees
How does credit worthiness impact
APR?
It will influence if a person receives a
credit card and the APR. APR will by
higher if a person has a poor credit
history.
Set-up and Maintenance
Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will
reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of
$250, initial available credit will be only about $209.

Annual Fee: $20

Account Set-up Fee: $20 (one-time fee)

Participation Fee: $12 annually ($1 per month)

Additional Card Fee: $5 annually (if applicable)
Transaction Fees



Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees



Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 17
Funded 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
2.6.3.G1
Interest Rates and Interest Charges
Fixed vs. Variable-rate APR
• Fixed-rate APR: cannot change
during the period of time outlined
in a credit card agreement
• Variable-rate APR: may change
depending on other factors (such
as economic conditions)
Annual Percentage Rate
(APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market
based on the Prime Rate.
APR for Balance Transfers
15.99%

This APR will vary with the market based on the Prime Rate
21.99%

This APR will vary with the market based on the Prime Rate
28.99%
This APR may be applied to your account if you:
1.
Make a late payment;
2.
Go over your credit limit;
3.
Make a payment that is returned; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply
until you make six consecutive minimum payments when due.
APR for Cash Advances
Penalty APR and When it
Applies
How to Avoid Paying
Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases
if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal
Federal Reserve Board
Reserve Board at http://www.federalreserve.gov/creditcard
Fees
Would you prefer a fixed or variable
rate credit card? Why?
Set-up and Maintenance
Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will
reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of
$250, initial available credit will be only about $209.

Annual Fee: $20

Account Set-up Fee: $20 (one-time fee)

Participation Fee: $12 annually ($1 per month)

Additional Card Fee: $5 annually (if applicable)
Transaction Fees



Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees



Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 18
Funded 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
2.6.3.G1
Interest Rates and Interest Charges
APR for Balance Transfers
& Cash Advances
• Balance transfer: act of
transferring debt from one credit
card to another
• Cash advance - withdrawing cash
from an ATM using a credit card
• Fees may apply (even if the APR
is 0%)
Annual Percentage Rate
(APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%

This APR will vary with the market based on the Prime Rate
21.99%

This APR will vary with the market based on the Prime Rate
28.99%
This APR may be applied to your account if you:
1.
Make a late payment;
2.
Go over your credit limit;
3.
Make a payment that is returned; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply
until you make six consecutive minimum payments when due.
APR for Cash Advances
Penalty APR and When it
Applies
How to Avoid Paying
Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases
if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal
Federal Reserve Board
Reserve Board at http://www.federalreserve.gov/creditcard
Fees
Set-up and Maintenance
Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will
reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of
$250, initial available credit will be only about $209.

Annual Fee: $20

Account Set-up Fee: $20 (one-time fee)

Participation Fee: $12 annually ($1 per month)

Additional Card Fee: $5 annually (if applicable)
Transaction Fees



Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees



Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 19
Funded 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
2.6.3.G1
Interest Rates and Interest Charges
Penalty APR & When it Applies
Penalty APR: interest rate charged on new
Annual Percentage Rate
(APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%

This APR will vary with the market based on the Prime Rate
21.99%

This APR will vary with the market based on the Prime Rate
28.99%
This APR may be applied to your account if you:
1.
Make a late payment;
2.
Go over your credit limit;
3.
Make a payment that is returned; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply
until you make six consecutive minimum payments when due.
APR for Cash Advances
Penalty APR and When it
Applies
transactions if the penalty terms in the
contract are triggered
What could trigger a Penalty APR?
How to Avoid Paying
Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases
if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal
Federal Reserve Board
Reserve Board at http://www.federalreserve.gov/creditcard
Fees
1.
2.
3.
4.
Make a late payment
Go over your credit limit
Make a payment that is returned
Do any of the above on another account that you
have with them.
Set-up and Maintenance
Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will
reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of
$250, initial available credit will be only about $209.

Annual Fee: $20

Account Set-up Fee: $20 (one-time fee)

Participation Fee: $12 annually ($1 per month)

Additional Card Fee: $5 annually (if applicable)
Transaction Fees



Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees



Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 20
Funded 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
2.6.3.G1
Interest Rates and Interest Charges
How To Avoid Paying
Interest on Purchases
Annual Percentage Rate
(APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%

This APR will vary with the market based on the Prime Rate
21.99%

This APR will vary with the market based on the Prime Rate
28.99%
This APR may be applied to your account if you:
1.
Make a late payment;
2.
Go over your credit limit;
3.
Make a payment that is returned; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply
until you make six consecutive minimum payments when due.
APR for Cash Advances
Penalty APR and When it
Applies
Pay your bill in full by the due date
Minimum Interest Charge
How to Avoid Paying
Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases
if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal
Federal Reserve Board
Reserve Board at http://www.federalreserve.gov/creditcard
Fees
Set-up and Maintenance
Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will
reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of
$250, initial available credit will be only about $209.

Annual Fee: $20

Account Set-up Fee: $20 (one-time fee)

Participation Fee: $12 annually ($1 per month)

Additional Card Fee: $5 annually (if applicable)
Transaction Fees



Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees



Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
Typically $0.50 - $2 per month
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 21
Funded 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
2.6.3.G1
Interest Rates and Interest Charges
Explore the Federal Reserve Board
website
Annual Percentage Rate
(APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%

This APR will vary with the market based on the Prime Rate
21.99%

This APR will vary with the market based on the Prime Rate
28.99%
This APR may be applied to your account if you:
1.
Make a late payment;
2.
Go over your credit limit;
3.
Make a payment that is returned; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply
until you make six consecutive minimum payments when due.
APR for Cash Advances
Penalty APR and When it
Applies
www.federalreserve.gov/creditcard
How to Avoid Paying
Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases
if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal
Federal Reserve Board
Reserve Board at http://www.federalreserve.gov/creditcard
Fees
Identify three resources on this site
that could help you in the future
when it comes to managing your
credit cards
Set-up and Maintenance
Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will
reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of
$250, initial available credit will be only about $209.

Annual Fee: $20

Account Set-up Fee: $20 (one-time fee)

Participation Fee: $12 annually ($1 per month)

Additional Card Fee: $5 annually (if applicable)
Transaction Fees



Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees



Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 22
Funded 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
2.6.3.G1
Interest Rates and Interest Charges
Set-up and Maintenance Fees
• Annual fee: yearly fee that may be
charged for having a credit card
• Set-up fee: fee for opening the
account
• Participation fee: monthly fee for
having the credit card
• Additional card fee: fee to have a
second person on the account
Why would a consumer choose a
credit card with an annual fee?
Benefits, such as airline miles, the card
offers are of greater value to them
Annual Percentage Rate
(APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%

This APR will vary with the market based on the Prime Rate
21.99%

This APR will vary with the market based on the Prime Rate
28.99%
This APR may be applied to your account if you:
1.
Make a late payment;
2.
Go over your credit limit;
3.
Make a payment that is returned; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply
until you make six consecutive minimum payments when due.
APR for Cash Advances
Penalty APR and When it
Applies
How to Avoid Paying
Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases
if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal
Federal Reserve Board
Reserve Board at http://www.federalreserve.gov/creditcard
Fees
Set-up and Maintenance
Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will
reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of
$250, initial available credit will be only about $209.

Annual Fee: $20

Account Set-up Fee: $20 (one-time fee)

Participation Fee: $12 annually ($1 per month)

Additional Card Fee: $5 annually (if applicable)
Transaction Fees



Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees



Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 23
Funded 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
2.6.3.G1
Interest Rates and Interest Charges
Annual Percentage Rate
(APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%

This APR will vary with the market based on the Prime Rate
21.99%

This APR will vary with the market based on the Prime Rate
28.99%
This APR may be applied to your account if you:
1.
Make a late payment;
2.
Go over your credit limit;
3.
Make a payment that is returned; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply
until you make six consecutive minimum payments when due.
APR for Cash Advances
Penalty APR and When it
Applies
Transaction Fees
• Balance transfer fees
• Cash advance fees
• Other
How to Avoid Paying
Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases
if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal
Federal Reserve Board
Reserve Board at http://www.federalreserve.gov/creditcard
Fees
Set-up and Maintenance
Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will
reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of
$250, initial available credit will be only about $209.

Annual Fee: $20

Account Set-up Fee: $20 (one-time fee)

Participation Fee: $12 annually ($1 per month)

Additional Card Fee: $5 annually (if applicable)
Transaction Fees



Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees



Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 24
Funded 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
2.6.3.G1
Interest Rates and Interest Charges
Penalty Fees
Penalty fees in addition to Penalty
APR
• Late-payment fee: charged when a
cardholder does not make the
minimum monthly payment by the
due date
• Over-the-limit fee: charged if the
account balance goes over the set
credit limit
• Returned payment fee: applies if
the cardholder does not have enough
money to cover a payment.
Annual Percentage Rate
(APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%

This APR will vary with the market based on the Prime Rate
21.99%

This APR will vary with the market based on the Prime Rate
28.99%
This APR may be applied to your account if you:
1.
Make a late payment;
2.
Go over your credit limit;
3.
Make a payment that is returned; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply
until you make six consecutive minimum payments when due.
APR for Cash Advances
Penalty APR and When it
Applies
How to Avoid Paying
Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases
if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal
Federal Reserve Board
Reserve Board at http://www.federalreserve.gov/creditcard
Fees
Set-up and Maintenance
Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will
reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of
$250, initial available credit will be only about $209.

Annual Fee: $20

Account Set-up Fee: $20 (one-time fee)

Participation Fee: $12 annually ($1 per month)

Additional Card Fee: $5 annually (if applicable)
Transaction Fees



Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees



Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 25
Funded 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
2.6.3.G1
Interest Rates and Interest Charges
Annual Percentage Rate
(APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%

This APR will vary with the market based on the Prime Rate
21.99%

This APR will vary with the market based on the Prime Rate
28.99%
This APR may be applied to your account if you:
1.
Make a late payment;
2.
Go over your credit limit;
3.
Make a payment that is returned; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply
until you make six consecutive minimum payments when due.
APR for Cash Advances
How We Calculate Your Balance
Credit card companies use one of
several methods to calculate an
outstanding credit card balance
Penalty APR and When it
Applies
How to Avoid Paying
Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases
if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal
Federal Reserve Board
Reserve Board at http://www.federalreserve.gov/creditcard
Fees
Set-up and Maintenance
Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will
reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of
$250, initial available credit will be only about $209.

Annual Fee: $20

Account Set-up Fee: $20 (one-time fee)

Participation Fee: $12 annually ($1 per month)

Additional Card Fee: $5 annually (if applicable)
Transaction Fees



Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees



Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 26
Funded 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
2.6.3.G1
Interest Rates and Interest Charges
Loss of Introductory APR
If the card has an introductory rate,
this area will list how the lower
introductory rate can be lost
Annual Percentage Rate
(APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%

This APR will vary with the market based on the Prime Rate
21.99%

This APR will vary with the market based on the Prime Rate
28.99%
This APR may be applied to your account if you:
1.
Make a late payment;
2.
Go over your credit limit;
3.
Make a payment that is returned; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply
until you make six consecutive minimum payments when due.
APR for Cash Advances
Penalty APR and When it
Applies
How to Avoid Paying
Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases
if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal
Federal Reserve Board
Reserve Board at http://www.federalreserve.gov/creditcard
Fees
Set-up and Maintenance
Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will
reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of
$250, initial available credit will be only about $209.

Annual Fee: $20

Account Set-up Fee: $20 (one-time fee)

Participation Fee: $12 annually ($1 per month)

Additional Card Fee: $5 annually (if applicable)
Transaction Fees



Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees



Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 27
Funded 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
2.6.3.G1
Credit Card Chaos
Two credit
card terms
will be
provided
Identify
which term is
true on your
credit card
offer
Move to the
correct side
of the room
indicated by
the arrow
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 28
Funded 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
2.6.3.G1
Credit Card Chaos
Does your credit card offer have a:
Fixed-rate APR for
Purchases
Card 3 – 15.99%
OR
Variable-rate APR
for Purchases
Card 1 – 14.99%
Card 2 – 14.99%
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 29
Funded 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
2.6.3.G1
Credit Card Chaos
Does your credit card offer have an Introductory Rate?
No Introductory
Rate
Card 2
Introductory Rate
OR
Card 1 – 12.99-14.99% for one year
Card 3 – 11.99% for one year
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 30
Funded 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
2.6.3.G1
Credit Card Chaos
Does your credit card offer have an:
APR for Purchases
greater than or equal to
15%
OR
APR for Purchases
less than 15%
Card 1
Card 2
Card 3
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 31
Funded 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
2.6.3.G1
Credit Card Chaos
Does your credit card offer have a Minimum Interest
Charge?
Minimum Interest
Charge
OR
No Minimum
Interest Charge
Card 1 - $1.50
Card 3 - $2.00
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 32
Funded 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
Card 2
2.6.3.G1
Credit Card Chaos
Does your credit card offer have an Annual Fee?
Annual Fee
No Annual Fee
OR
Card 1 - $20
Card 3 - $15
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 33
Funded 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
Card 2
2.6.3.G1
Credit Card Chaos
Does your credit card offer have a Balance Transfer Fee?
Balance
Transfer Fee
No Balance
Transfer Fee
OR
Card 3
Card 1 - $5 or 3%
Card 2 - $25 or 5%
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 34
Funded 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
2.6.3.G1
Credit Card Chaos
Does your credit card offer have a Late Payment Fee?
Late Payment
Fee
OR
No Late
Payment Fee
Card 1 - $29 if balance less than $1000 or
$35 for balances greater than $1000
Card 2 - $30
Card 3 -$35
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 35
Funded 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
2.6.3.G1
How Do I Obtain a Credit Card?
Shop around
Compare credit card offers
and determine which card
best fits your needs
Complete a credit application
Approval?
A form requesting information
about a person’s ability to
repay
Credit card companies send pre-approved credit card
applications in the mail when the individual has
passed the initial credit check
Applicant may or may not be
approved (depends on
creditworthiness)
If approved, review the final
credit terms closely
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 36
Funded 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
2.6.3.G1
Obtaining a Credit Card
You must be 21
Or, have a cosigner
Or, have proof
of sufficient
income to
make
payments
If a credit card is not
managed responsibly,
what impact does that
have on a co-signer?
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 37
Funded 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
2.6.3.G1
What is a Credit Card Statement?
It is important to
review each monthly
credit card statement
closely!
Andrew’s Credit Card Statement
Please help Andrew interpret his credit card statement.
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 38
Funded 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
2.6.3.G1
Andrew’s Credit Card Statement
Summary of Account Activity
Previous Balance
Payments
Purchases
Balance Transfers
Cash Advances
Past Due Amount
Fees Charged
Interest Charged
New Balance
1
Credit Limit
Available credit
Statement closing date
Days in billing cycle
Summary of Account Activity
Overview of credit card
Payment Information
535.07
-450.00
+517.12
+785.00
+318.00
+0.00
+69.45
+11.36
$1,786.00
$2,000.00
$214.00
3/22/2012
30
3
4
2
New Balance
$1786.00
Minimum Payment Due
$53.00
Payment Due Date
4/20/12
Late 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…
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…
Summary of Account Activity
Only the minimum payment
8 years
$2,785
$62
3 years
$2,232
Previous Balance
535.07
Notice of Changes to Your Interest Rates
Important Changes to Your Account Terms
6
You have triggered the Penalty APR of 28.99%. This change
PaymentsThe following is a summary of changes that are being made to your account terms.
-450.00
For more detailed information, please
will impact your account as follows:
refer to the booklet enclosed with this statement. These changes will impact your account as follows:
5
Transactions made on or after 4/9/12: As of 5/10/12,
the
Purchases
+517.12
Transactions made on or after 4/9/12: As of 5/10/12, any changes to APR’s described below will apply to these transactions.
Penalty APR will apply to these transactions. We may keep
Transactions made before 4/9/12: Current APRs will continue to apply to these+785.00
transactions.
the APR at this level indefinitely.
Balance Transfers
If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not
Transactions made before 4/9/12: Current rates will
go
into
affect
at
this
time.
These
changes
will
go
into
effect
when
the
Penalty
APR
no longer applies to your account.
continue to apply to these transactions. If you become
Cash Advances
+318.00
more than 60 days late on your account, the Penalty APR
Revised Terms, as of 5/10/12
will apply to those transactions as well.
APR for purchases
16.99%
Past Due Amount
+0.00
Transactions
Fees Charged
+69.45
7
Description of Transaction or Credit
Reference Number
Trans Date Interest
Post Date
Charged
+11.36 Amount
Store #1
$517.12
XXXX1
2/22
2/23
New2/25Balance Payment
$1,786.00
$450.00 XXXX2
2/25
XXXX3
XXXX4
2/26
2/27
XXXX5
XXXX6
XXXX7
2/23
2/27
2/28
2/26
3/1
Cash Advance
Balance Transfer
Credit Limit
Fees
Late Fee
2/23
Available
credit
Balance Transfer Fee
2/27
Cash Advance Fee
2/28
Statement
closing
date
Total Fees for this Period
$318.00
$785.00
$2,000.00
$214.00
83/22/2012
$35.00
$23.55
$10.90
$69.45
Interest Charged
How much did Andrew charge in new
purchases during this credit card
billing cycle?
$517.12
Interest Charge on Purchases
Days in billing cycle
Interest Charge on Cash Advances
$6.57
$4.79
$11.36
30
Total Interest for this Period
2012 Totals Year-to-Date
Total fees charged in 2012
Total interest charged in 2012
$90.14
$18.74
9
Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Type of Balance
Purchases
Cash Advances
Balance Transfers
Annual Percentage Rate (APR)
14.99%
21.99%
0.00%
10
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 39
Funded 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
Balance Subject to Interest Rate
$533.32
$265.00
$575.67
Interest Charge
$6.57
$4.79
$0.00
2.6.3.G1
Andrew’s Credit Card Statement
Summary of Account Activity
Previous Balance
Payments
Purchases
Balance Transfers
Cash Advances
Past Due Amount
Fees Charged
Interest Charged
New Balance
Payment Information
• Total new balance
• Minimum payment amount
• Date payment is due
Payment Information
535.07
-450.00
+517.12
+785.00
+318.00
+0.00
+69.45
+11.36
$1,786.00
1
3
4
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…
If you make no additional
charges using this card and each
month you pay…
Payment Information
Credit Limit
Available credit
Statement closing date
Days in billing cycle
$2,000.00
$214.00
3/22/2012
30
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
8 years
$2,785
New Balance
$1,786.00
$62
3 years
$2,232
Minimum Payment Due
$53.00
Notice of Changes to Your Interest Rates
Important Changes to Your Account Terms
Payment
Due Date
4/20/12
6
You have triggered the Penalty APR of 28.99%. This change
The following is a summary of changes that are being made to your account terms. For more detailed information, please
will
impact
your
account
as
follows:
Late Payment Warning: If we do 5
not receive
yourenclosed
minimum
payment
by will
the
date
listed
above,
refer to the booklet
with this statement.
These changes
impact
your account
as follows:
Transactions made on or after 4/9/12: As of 5/10/12, the
made onbe
or after
4/9/12: As of 5/10/12,
changes
to APR’s described
will apply to these transactions.
you
may
pay
a $35We
fee
APR’s may
increased
up toanythe
Penalty
rate below
of 28.99%
Penalty
APR have
will apply to
to these
transactions.
mayand
keep your Transactions
Transactions made before 4/9/12: Current APRs will continue to apply to these transactions.
the APR at this level indefinitely.
Minimum
Payment
Warning:
If
you
make
only
the
minimum
payment
each
period,
you
will
pay
If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s
described below will not
Transactions made before 4/9/12: Current rates will
go into affect at this time. These changes will go into effect when the Penalty APR no longer applies to your account.
continue
to
apply
to
these
transactions.
If
you
become
more
in
interest
and
it
will
take
you
longer
to
pay
off
your
balance.
For
example…
more than 60 days late on your account, the Penalty APR
Revised Terms, as of 5/10/12
will apply to those transactions as well.
APR for purchases
Reference Number
XXXX1
XXXX2
XXXX3
XXXX4
XXXX5
XXXX6
XXXX7
Trans Date
If you make
no
2/22
additional charges
2/25 using
this card and2/26
each
2/27
month you pay…
2/23
Only the minimum
2/27
2/28
payment
Post Date
Amount
And you will end up
paying an estimated
total of…
Fees
$62
What is Andrew’s minimum payment
due for this billing cycle?
Description of Transaction or Credit
Store #1off the
2/23 You will pay
Payment
2/25
on this
Cash Advance
2/26balance shown
Balance Transfer
3/1 statement
in about…
2/23
2/27
2/28
16.99%
7
Transactions
$53.00
2
New Balance
$1786.00
Minimum Payment Due
$53.00
Payment Due Date
4/20/12
Late 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%
Late Fee
Balance Transfer Fee
Cash Advance Fee
Total Fees for this Period
8 years
$517.12
$450.00 $318.00
$785.00
$35.00
$23.55
$10.90
$69.45
$2,785
8
Interest Charged
3 years
Interest Charge on Purchases
Interest Charge on Cash Advances
Total Interest for this Period
$2,232
(Savings=$553)
$6.57
$4.79
$11.36
2012 Totals Year-to-Date
Total fees charged in 2012
Total interest charged in 2012
$90.14
$18.74
9
Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Type of Balance
Purchases
Cash Advances
Balance Transfers
Annual Percentage Rate (APR)
14.99%
21.99%
0.00%
10
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 40
Funded 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
Balance Subject to Interest Rate
$533.32
$265.00
$575.67
Interest Charge
$6.57
$4.79
$0.00
2.6.3.G1
Andrew’s Credit Card Statement
Late Payment Warning
What will happen if a payment is
late—usually additional fees and a
higher interest rate
Minimum Payment Warning
Estimate of how long it can take to
pay off balance if only minimum
payment is made
Summary of Account Activity
Previous Balance
Payments
Purchases
Balance Transfers
Cash Advances
Past Due Amount
Fees Charged
Interest Charged
New Balance
1
Payment Information
535.07
-450.00
+517.12
+785.00
+318.00
+0.00
+69.45
+11.36
$1,786.00
2
New Balance
$1786.00
Minimum Payment Due
$53.00
Payment Due Date
4/20/12
Late 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%
3Payment Information
4
Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it
New Balance
$1,786.00
will take you longer to pay off your balance. For example…
Minimum Payment Due
$53.00
If you make no additional
You will pay off the balance shown
And you will end up paying an
charges
using
this
card
and
each
Payment Due Date
4/20/12
on this statement in about…
estimated
total of…
month you pay…
Credit Limit
$2,000.00
Late
Payment
Warning:
If
we
do
not
receive
your
minimum
payment
by
the
date
listed
above,
Available credit
$214.00
Only the minimum payment
8 years
$2,785
Statement
youclosing
maydatehave to pay a $353/22/2012
fee and your APR’s may
be increased up to
the Penalty rate of 28.99%
$62
3 years
$2,232
Days in billing cycle
30
Minimum Payment Warning: If you make only the minimum payment each period, you will pay
Notice of Changes to Your Interest Rates
Changes
to Your
Account
Terms For example…
more
in the
interest
it will
take youImportant
longer to
pay off
your
balance.
6
You have
triggered
Penalty APRand
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 those transactions as well.
5
The 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, any changes to APR’s described below will apply to these transactions.
Transactions made before 4/9/12: Current APRs will continue to apply to these transactions.
If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not
go into affect at this time. These changes will go into effect when the Penalty APR no longer applies to your account.
If you make no
Revised Terms, as of 5/10/12
You will pay off the
And
you will end up
APR for purchases
16.99%
additional charges using
balance shown on this
paying an estimated
Transactions
this card and each
7
statementDescription
in about…
total of…
of Transaction or Credit
Amount
Reference Number month
Trans
youDate
pay… Post Date
Store #1
XXXX1
2/22 minimum
2/23
Only the
Payment
8 years
$2,785
XXXX2
2/25
2/25
payment
Cash Advance
XXXX3
2/26
2/26
Balance Transfer
XXXX4
2/27
3/1
$62
3 years
$2,232
$517.12
$450.00 $318.00
$785.00
Fees
XXXX5
XXXX6
XXXX7
2/23
2/27
2/28
2/23
2/27
2/28
Late Fee
Balance Transfer Fee
Cash Advance Fee
Total Fees for this Period
$35.00
$23.55
$10.90
$69.45
8
Interest Charged
How long will it take Andrew to pay off
the balance of his credit card if he only
pays the minimum payment?
Interest Charge on Purchases
Interest Charge on Cash Advances
Total Interest for this Period
2012 Totals Year-to-Date
Total fees charged in 2012
Total interest charged in 2012
$90.14
$18.74
9
Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Type of Balance
8 years
$6.57
$4.79
$11.36
Purchases
Cash Advances
Balance Transfers
Annual Percentage Rate (APR)
14.99%
21.99%
0.00%
10
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 41
Funded 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
Balance Subject to Interest Rate
$533.32
$265.00
$575.67
Interest Charge
$6.57
$4.79
$0.00
2.6.3.G1
Andrew’s Credit Card Statement
Summary of Account Activity
Notice of Changes to Your Interest
Rates
Notifies card holder if rates are
changing (typically a result of the
Penalty APR being triggered)
Payment Information
Previous Balance
Payments
Purchases
Balance Transfers
Cash Advances
Past Due Amount
Fees Charged
Interest Charged
New Balance
535.07
-450.00
+517.12
+785.00
+318.00
+0.00
+69.45
+11.36
$1,786.00
Credit Limit
Available credit
Statement closing date
Days in billing cycle
$2,000.00
$214.00
3/22/2012
30
2
New Balance
$1786.00
Minimum Payment Due
$53.00
Payment Due Date
4/20/12
Late 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%
3
1
4 Interest Rates
Notice of Changes to Your
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…
If you make no additional
You will pay off the balance shown
And you will end up paying an
using this card
and each
You have triggered the Penalty APR ofcharges
28.99%.
This
change
impact
your account
astotalfollows:
onwill
this statement
in about…
estimated
of…
month you pay…
Only the minimum payment
8 years
$2,785
3 years
$2,232
Transactions made on or after 4/9/12: As of $625/10/12, the Penalty
APR will apply to these
Notice
of Changes to Your
transactions.
WeInterest
may Rates
keep the APR
at this
levelto indefinitely.
Important
Changes
Your Account Terms
6
5
Transactions made before 4/9/12: Current rates will continue to apply to these transactions. If
You 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 those transactions as well.
The 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, any changes to APR’s described below will apply to these transactions.
Transactions
made before
4/9/12: Current
APRs will
continue to apply
you become more than 60 days late
on your
account,
the
Penalty
APRto these
willtransactions.
apply to those
If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not
go into affect at this time. These changes will go into effect when the Penalty APR no longer applies to your account.
transactions as well.
Revised Terms, as of 5/10/12
APR for purchases
16.99%
7
Transactions
Reference Number
Trans Date
Post Date
Description of Transaction or Credit
XXXX1
XXXX2
XXXX3
XXXX4
2/22
2/25
2/26
2/27
2/23
2/25
2/26
3/1
Store #1
Payment
Cash Advance
Balance Transfer
XXXX5
XXXX6
XXXX7
2/23
2/27
2/28
2/23
2/27
2/28
Late Fee
Balance Transfer Fee
Cash Advance Fee
Total Fees for this Period
Amount
$517.12
$450.00 $318.00
$785.00
Fees
Has Andrew triggered
the Penalty APR?
Yes, he will pay 28.99% on all transactions
made after 4/9/12
$35.00
$23.55
$10.90
$69.45
8
Interest Charged
Interest Charge on Purchases
Interest Charge on Cash Advances
Total Interest for this Period
$6.57
$4.79
$11.36
2012 Totals Year-to-Date
Total fees charged in 2012
Total interest charged in 2012
$90.14
$18.74
9
Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Type of Balance
Purchases
Cash Advances
Balance Transfers
Annual Percentage Rate (APR)
14.99%
21.99%
0.00%
10
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 42
Funded 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
Balance Subject to Interest Rate
$533.32
$265.00
$575.67
Interest Charge
$6.57
$4.79
$0.00
2.6.3.G1
Andrew’s Credit Card Statement
Summary of Account Activity
Important Changes to Your Account
Terms
• Must be notified of any significant
changes
• Any changes can only apply to new
charges
• Account can be closed before the
changes go into effect
Previous Balance
Payments
Purchases
Balance Transfers
Cash Advances
Past Due Amount
Fees Charged
Interest Charged
New Balance
1
Credit Limit
Available credit
Statement closing date
Days in billing cycle
Payment Information
535.07
-450.00
+517.12
+785.00
+318.00
+0.00
+69.45
+11.36
$1,786.00
$2,000.00
$214.00
3/22/2012
30
Notice of Changes to Your Interest Rates
3
4
2
New Balance
$1786.00
Minimum Payment Due
$53.00
Payment Due Date
4/20/12
Late 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…
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
8 years
$2,785
$62
3 years
$2,232
6
Important Changes to Your Account Terms
You 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 those transactions as well.
Important Changes to5Your Account Terms
The 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, any changes to APR’s described below will apply to these transactions.
The following is a summary of changes
that
are 4/9/12:
being
made
your
account
terms. For more
Transactions
made before
Current
APRs will to
continue
to apply
to these transactions.
If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not
detailed information, please refer gotointothe
booklet
enclosed
with
statement.
changes
affect at
this time. These
changes will go into
effect this
when the
Penalty APR no longerThese
applies to your
account.
Revised Terms, as of 5/10/12
will impact your account as follows:
APR for purchases
16.99%
Transactions made on or after 4/9/12: As ofTransactions
5/10/12, any7changes to APR’s described below will
Description of Transaction or Credit
Amount
Reference
Trans Date
Post Date
apply
toNumber
these transactions.
XXXX1
XXXX2
XXXX3
XXXX4
2/22
2/23
Store #1
$517.12
2/26
2/26
Cash Advance
$318.00
Transactions made
Current
APRs will continue to apply to these transactions.$450.00 Payment
2/25before 4/9/12:
2/25
Transfer for purchases: In this case, any changes to $785.00
3/1
If you are already2/27
being charged
a higherBalance
Penalty
Fees
APR’s described below
will not
Late Fee at this time. These changes will go into effect when
$35.00
XXXX5
2/23
2/23 go into affect
Balance Transfer Fee
$23.55
XXXX6
2/27longer applies
2/27
the
Penalty
APR
no
to
your
account.
Cash Advance Fee
$10.90
8
XXXX7
2/28
2/28
Total Fees for this Period
$69.45
Interest Charge on Purchases
$6.57
$4.79
$11.36
Interest Charged
Revised Terms,
as of 5/10/12
Other than implementation of the
Penalty APR, will there be any other
changes to Andrew’s account terms?
Interest Charge on Cash Advances
APR for purchases
16.99%
Total Interest for this Period
2012 Totals Year-to-Date
Total fees charged in 2012
Total interest charged in 2012
$90.14
$18.74
9
Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Yes, his APR for Purchases is increasing to
16.99%
Type of Balance
Purchases
Cash Advances
Balance Transfers
Annual Percentage Rate (APR)
14.99%
21.99%
0.00%
10
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 43
Funded 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
Balance Subject to Interest Rate
$533.32
$265.00
$575.67
Interest Charge
$6.57
$4.79
$0.00
2.6.3.G1
Andrew’s Credit Card Statement
Summary of Account Activity
Transactions
• List of all transactions since the
last statement
• Should be reviewed for errors
Fees and Interest Charged
• Fees and interest charges must be
listed separately
Previous Balance
Payments
Purchases
Balance Transfers
Cash Advances
Past Due Amount
Fees Charged
Interest Charged
New Balance
1
Payment Information
535.07
-450.00
+517.12
+785.00
+318.00
+0.00
+69.45
+11.36
$1,786.00
3
4
2
New Balance
$1786.00
Minimum Payment Due
$53.00
Payment Due Date
4/20/12
Late 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…
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…
Transactions
Credit Limit
$2,000.00
Available credit
$214.00
Only the minimum payment
8 years
$2,785
Reference
Trans
Post
Description
of Transaction or
Statement closing date
3/22/2012
Amount
$62
3 years
$2,232
Days
in billing cycle
30
Number
Date
Date
Credit
Notice of Changes to Your
Interest Rates
XXXX1
2/22
2/23
StoreChanges
#1 to Your Account Terms
$535.07
Important
You have triggered the Penalty APR of 28.99%. This change
The following
is a summary of changes that are being made to your account terms. For more detailed$450.00
information, please
XXXX2
2/25
2/26
Payment
- 6
will impact your account as follows:
refer to the booklet enclosed with this statement. These changes will impact your account as follows:
5
Transactions made on or after2/26
4/9/12: As of 5/10/12,
the
XXXX3
2/26
Cash Advance
$318.00
Transactions made on or after 4/9/12: As of 5/10/12, any changes to APR’s described below will apply to these transactions.
Penalty APR will apply to these transactions. We may keep
Transactions
made before
4/9/12: Current APRs will continue to apply to these transactions.
the APR at this level indefinitely.
XXXX4
3/15
3/17
Balance
Transfer
$785.00
If you are already being charged a higher Penalty for purchases: In this case, any changes to APR’s described below will not
Transactions made before 4/9/12: Current rates will
go
into
affect
at
this
time.
These
changes
will
go
into
effect
when
the
Penalty
APR
no
longer
applies
to
your
account.
Fees
continue to apply to these transactions. If you become
more than 60 days late on your account, the Penalty APR
Revised Terms, as of 5/10/12
XXXX5
2/23
Late Fee
$35.00
will apply to those transactions2/23
as well.
APR for purchases
16.99%
XXXX6
2/27
2/27
BalanceTransactions
Transfer Fee
$23.55
7
XXXX7Reference Number 2/28Trans Date 2/28 Post Date Cash Advance
Fee
$10.90
Description of Transaction or Credit
Amount
Total
Fees for this Period
$69.45$517.12
Store #1
XXXX1
2/22
2/23
PaymentCharged
$450.00 XXXX2
2/25
2/25
Interest
Cash Advance
$318.00
XXXX3
2/26
2/26
Interest
Charge
on
Purchases
$6.59
Balance Transfer
$785.00
XXXX4
2/27
3/1
Fees
Interest Charge
on Cash
$4.79
Late Fee
$35.00
XXXX5
2/23
2/23
Advances
Balance Transfer Fee
$23.55
XXXX6
2/27
2/27
CashInterest
Advance Fee for this Period
8
XXXX7
2/28
2/28
Total
$11.36$10.90
Total Fees for this Period
$69.45
Interest Charged
2012 Interest
Totals
Year-to-Date
Charge
on Purchases
Total fees charged in 2012
Total interest charged in 2012
Does Andrew owe a late fee?
Interest Charge on Cash Advances
Total Interest for this Period
2012 Totals Year-to-Date
Total fees charged in 2012
Total interest charged in 2012
Yes, he owes a $35.00 late fee
$90.14
$18.74
$90.14
$18.74
9
Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Type of Balance
Purchases
Cash Advances
Balance Transfers
Annual Percentage Rate (APR)
14.99%
21.99%
0.00%
10
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 44
Funded 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
Balance Subject to Interest Rate
$533.32
$265.00
$575.67
Interest Charge
$6.57
$4.79
$0.00
$6.57
$4.79
$11.36
2.6.3.G1
Andrew’s
Credit Card Statement
Transactions
Year-to-Date Totals
Total amount paid in fees and
interest charges for the current year
What is the total amount of
interest Andrew has paid in the
year 2012?
$18.74
Interest Charge Calculation
Summary of the different types of
transactions
Why is it important to
understand how to read a credit
card statement?
Summary of Account
Activity
Reference
Trans
Payment Information
Description of Transaction
or
2 Amount
Number
Date
Credit
XXXX1
2/22
Store #1
$535.07
XXXX2
Payment
$450.00 12/25
Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it
XXXX3
2/26
Cash
Advance
$318.00
will take you longer to pay off your balance. For example…
XXXX4
2/27
Balance
Transfer
$785.00
If you make no additional
You will pay off the balance shown
And you will end up paying an
charges using this card and each
Fees
on this statement in about…
estimated total of…
month you pay…
Credit Limit
$2,000.00
XXXX5
2/23
2/23
Late
Fee
$35.00
Available credit
$214.00
Only the minimum payment
8 years
$2,785
Statement closing date
3/22/2012
XXXX6
2/27
2/27
Balance
Transfer
Fee
$23.55
$62
3 years
$2,232
Days in billing cycle
30
XXXX7
2/28
2/28
Cash Advance Fee
$10.90
Notice of Changes to Your Interest Rates
Important
Changes
to Your
Terms
Total
Fees
for Account
this Period
$69.45
6
You have triggered the Penalty APR of 28.99%. This change
The following is a summary of changes that are being made to your account terms. For more detailed information, please
will impact your account as follows:
Charged
refer to theInterest
booklet enclosed
with this statement. These changes will impact your account as follows:
5
Transactions made on or after 4/9/12: As of 5/10/12, the
TransactionsInterest
made on or after
4/9/12: Ason
of 5/10/12,
any changes to APR’s described below will apply to these transactions.
Penalty APR will apply to these transactions. We may keep
Charge
Purchases
$6.57
Transactions made before 4/9/12: Current APRs will continue to apply to these transactions.
the APR at this level indefinitely.
If you are already
being charged
a higheron
Penalty
for purchases: In this case, any changes to APR’s described below
will not
Interest
Charge
Cash
$4.79
Transactions made before 4/9/12: Current rates will
go into affect at this time. These changes will go into effect when the Penalty APR no longer applies to your account.
continue to apply to these transactions. If you become
Advances
more than 60 days late on your account, the Penalty APR
Revised Terms, as of 5/10/12
will apply to those transactions as well.
APR for purchases
Total Interest for
this Period 16.99%
$11.36
Previous Balance
Payments
Purchases
Balance Transfers
Cash Advances
Past Due Amount
Fees Charged
Interest Charged
New Balance
Post
Date
2/23
2/25 3
2/26 4
3/11
535.07
-450.00
+517.12
+785.00
+318.00
+0.00
+69.45
+11.36
$1,786.00
New Balance
$1786.00
Minimum Payment Due
$53.00
Payment Due Date
4/20/12
Late 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%
Transactions
Reference Number
XXXX1
XXXX2
XXXX3
XXXX4
Trans Date
Post Date
7
Description
of Transaction or Credit
2012 Totals
Year-to-Date
Amount
#1
2/23
Total2/22
fees charged
in 2012 Store
Payment
2/25
2/25
Total2/26
interest charged
in 2012Cash Advance
2/26
2/27
3/1
Balance Transfer
2/23
2/27
2/28
2/23
2/27
2/28
Late Fee
Balance Transfer Fee
Cash Advance Fee
Total Fees for this Period
$90.14
$18.74
$517.12
$450.00 $318.00
$785.00
Fees
XXXX5
XXXX6
XXXX7
$35.00
$23.55
$10.90
$69.45
8
Interest Charged
Interest Charge on Purchases
Interest Charge on Cash Advances
Total Interest for this Period
$6.57
$4.79
Interest Charge Calculation
$11.36
Annual Percentage 2012
RateTotals Year-to-Date
Balance Subject to Interest
Type of Balance Total fees charged in 2012
Interest
9 Charge
$90.14
(APR)
Rate
Total interest charged in 2012
$18.74
Purchases
14.99%
$533.32
$6.57
Cash Advances Interest Charge Calculation
21.99%
$265.00
$4.79
*Your Annual Percentage Rate (APR) is the
annual interest rate on your account.
Type of Balance
Annual Percentage Rate (APR)
Balance Subject to Interest Rate
Interest Charge
Balance
Transfers
0.00%
$575.67
$0.00
Purchases
14.99%
$533.32
$6.57
Cash Advances
Balance Transfers
21.99%
0.00%
10
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 45
Funded 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
$265.00
$575.67
$4.79
$0.00
2.6.3.G1
Be Andrew’s Financial Advisor
Andrew has come to you and voiced his concerns about
having a credit card. He is considering getting rid of his
credit card.
As a “financial advisor,” you understand that credit
cards are financial tools that can be used or abused.
What three pieces of advice will you give Andrew?
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 46
Funded 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
2.6.3.G1
Summary
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 credit history
If you apply for credit and
are approved, be sure to
review the final credit terms
offered
Credit card companies are
required to disclose the
terms and fees of a credit
card
Credit card statements
outline important
information about a credit
card and should be checked
carefully for errors
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 47
Funded 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