Brandon Taylor
FIRE 301
Credit Card Assignment
Card A: Platinum
Card B: Blue Cash
Card C: Green
Questions
Does this
card have an
introductory
rate? If so,
what is the
rate and for
how long
does it last?
What is the
annual
percentage
rate? Is it
fixed or
variable?
Is there an
annual fee? If
so, what is it?
What is the
late fee?
Does the card
have rewards
for use? What
are they?
No intro APR
0% for 15 months
0% for 12 months
16.24% to 23.24 variable
14.24% to 24.24%
variable
16.24% to 23.24%
variable
$695
$0
$150
Up to $40
Up to $40
Up to $40
Points system
 5X points for
American Express
Travel and hotels
 1X points for all
other purchases
Cash Back rewards
system
 Unlimited 1.5% on
all purchases
Points Systems
 3X points at
restaurants, transit,
and travel + hotels
 1X on
Brandon Taylor
FIRE 301
Credit Card Assignment
What kind of
credit score
do you need
to have for
this card?
What is the
minimum?
What is the
maximum?
Min. Low 700+, no max
Min. 670+, no max
Minimum 700+, no max
1. Which of the 3 credit cards would you choose for yourself and why? You should list
pro’s and con’s for each of the 3 credit cards.
Amex Blue Cash
Pros: Unlimited 1.5% cashback, No annual fee, long intro APR
Cons: No rewards for travel, limited cashback % compared to other cards, no redeemable
points which is lost value compared to the points system
2. Why is it important to know if a credit card is at a fixed or variable APR?
This rate can change at any time and if you carry a balance, you will be spending more from
interest.
3. What is a credit utilization ratio? Why is it important to know? Is there a recommended
rule of thumb when it comes to your credit utilization ratio?
Total used revolving credit / Total available credit line
Generally, no remaining statement balance is best. However, you should keep it under 30%.
In my experience, 3-6% has worked best if the full balance is not being paid to show activity.
The lower the better.
4. What are two pros of a credit card? What are two cons of a credit card?
Pros: Build credit, earn rewards on purchases you would have made, purchase protection
Cons: Risk of overspending & debt, tarnish credit, extra spending from interest if statement
balance is not paid off