Post on 14-May-2015
Credit Card
Understanding Your Credit Card
Credit UnitTake Charge of Your
Finances
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 Card
1.4.1.G1
Credit
When goods, services or money is received in exchange for a promise to pay a definite sum
of money at a future date
The price of money- when referring to credit, interest is the charge for
borrowing money
CREDIT-
INTEREST-
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 Card
1.4.1.G1
Lender and Borrower
LENDER-The person or
organization who has the resources
to provide the individual with a
loan
BORROWER-
The person or organization that is
receiving the money from the
lender
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 Card
1.4.1.G1
Closed-end vs. Open-end Credit
Characteristics
Closed-end credit
Open-end (revolving)
credit
Definition A one-time loanCredit extended in
advance
Purpose of loan
Specified in application
May be used for a variety of purposes
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 Card
1.4.1.G1
Closed-end vs. Open-end Credit
Characteristics
Closed-end credit
Open-end credit
PaymentsSpecified number
of equal payments
Varies- can be paid in one payment or a series of equal or unequal payments
Loan Amount
Agreed upon during the application
process
May be increased for responsible
consumers
ExamplesMortgage,
automobile, education loans
Credit cards
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 Card
1.4.1.G1
Credit Card
What is a credit card?Pre-approved credit which can be used for the
purchase of goods and services now and payment of them later
A credit cards credit limit varies based upon an individual’s
perceived creditworthinessCredit limit is the maximum dollar amount
loaned
Creditworthiness is an individuals ability and
willingness to pay the money back
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 Card
1.4.1.G1
Credit Card Interest
Interest is charged each month the balance is not
paid in full
The cost of credit expressed as a yearly interest rate
Rate at which interest is charged is referred to as:
Annual Percentage Rate (APR)
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 Card
1.4.1.G1
Minimum Payments
• Required to make at least a minimum payment each month– Usually only a small percentage (2.5-
5%) of the total balance due
• Cardholders who only make the minimum payment:–Make slow progress paying off card
balance– Pay substantially more than what was
initially charged to the card
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 Card
1.4.1.G1
Minimum Payments
Amount charged to credit card in
one purchas
e
APRMinimu
m payment
Time to pay off
the credit card
Total amount paid in interest
Total amount
paid
$2,000 18% $50.00 62 months $1,077.25 $3,077.25
$500 12% $25.00 23 months $60.67 $560.67
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 Card
1.4.1.G1
Advantages to using Credit Cards
AdvantagesConvenient payment
toolUseful 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
because of the Fair Credit Billing Act protectionPossibility of receiving
bonuses, such as frequent flyer miles or cash rebates
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 Card
1.4.1.G1
Disadvantages to using Credit Cards
DisadvantagesInterest can be costly
when a balance is revolvedAdditional
penalty fees may apply
Tempting to overspend
Risk of identity theft
Responsible for lost/stolen cards
Applying for multiple accounts can lower your
credit score
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 Card
1.4.1.G1
Debit Cards
• What is a debit card?– A plastic card which looks like a credit
card, but is electronically connected to the cardholder’s bank account
–Money is immediately withdrawn from the cardholders checking account
What is the difference between a credit card and a debit card?
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 Card
1.4.1.G1
Credit History
Credit ReportA record of a consumer’s credit history that
includes information about credit card use as well as the use of other types of credit, such as auto loans, student loans and mortgage loans
A number that summarizes an individual’s credit record and history. It is a numeric “grade” of a
consumer’s financial reliability
Credit Score
Credit cards can have a positive or negative impact on an individuals credit history
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 Card
1.4.1.G1
Positive Credit Card use
Proper credit card
use
Helps develop positive credit history
and credit report
Earn a high credit score
A high credit score gives the consumer the opportunity to have lower interest rates on loans, the privilege to use different forms of credit, and an easier approval process
for future credit
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 Card
1.4.1.G1
Positive Credit Card Use
• Examples of positive credit card behaviors:– Paying credit card balances in full every
month– Paying credit card bills on time – Applying for only credit cards that are
needed– Keeping track of all charges by keeping
receipts and using a check register– Checking the monthly credit card
statement for errors
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 Card
1.4.1.G1
Negative Credit Card Use
Consumers with low credit scores have difficulty getting loans, difficulty renting apartments, pay higher interest rates, pay higher insurance rates, and have
difficulty obtaining a job
Improper credit card
use
Develops negative
credit history
and credit report
Lower credit score
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 Card
1.4.1.G1
Negative CreditCard use
• Examples of negative credit card behaviors:–Making late credit card payments– Paying only the minimum payment– Exceeding the card’s credit limit (usually
triggers a penalty fee)– Charging items that can’t be paid off
immediately– Owning too many credit cards
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 Card
1.4.1.G1
NO Credit
• If an individual has not used credit, they will not have any information in their credit report
• Not having a credit report can cause an individual to be denied credit
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 Card
1.4.1.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
This is called the Schumer box
Credit Card
Interest Rates and Interest ChargesAnnual 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
APR for Cash Advances
21.99% This APR will vary with the market based on the Prime Rate
Penalty APR and When it Applies
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; or4. 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.
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
FeesSet-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. dollarsPenalty 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
Annual Percentage Rate (APR) for
PurchasesThis section discloses the interest paid for
purchases on the card. Multiple interest rates
may be listed here, because the final interest rate may
depend on the creditworthiness of the
applicant
Interest Rates and Interest ChargesAnnual 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
APR for Cash Advances
21.99% This APR will vary with the market based on the Prime Rate
Penalty APR and When it Applies
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; or4. 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.
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
FeesSet-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. dollarsPenalty 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
Introductory RateIf the credit card has an introductory rate it will be shown in this section, which is the
APR charged during the credit card's
introductory period after a credit card account is opened. The card will have a different APR after the introductory
period endsWhat is the introductory rate for
this credit card offer?The introductory rate depends on the
creditworthiness of the applicant, but it
will be 12.99%, 13.99%, or 14.99%
Interest Rates and Interest ChargesAnnual 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
APR for Cash Advances
21.99% This APR will vary with the market based on the Prime Rate
Penalty APR and When it Applies
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; or4. 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.
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
FeesSet-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. dollarsPenalty 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
Variable-rate APRSome cards will have a variable-rate APR, which is an APR that
may change depending on other factors, such as the prime rate. The prime rate is an index
that represents the interest rate most banks charge their most credit-worthy
customers What is the APR for Purchases for this credit
card offer?14.99%
Is this a variable-rate APR or a fixed-rate APR?
Variable-rate APR
Interest Rates and Interest ChargesAnnual 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
APR for Cash Advances
21.99% This APR will vary with the market based on the Prime Rate
Penalty APR and When it Applies
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; or4. 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.
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
FeesSet-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. dollarsPenalty 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
APR for Balance Transfers
This section discloses the interest paid for balance transfers, which is the act of
transferring debt from one credit card account
to another. Balance transfer fees may apply,
even if the balance transfer APR is 0% What is the APR for balance transfers for this
credit card offer?15.99%
Credit Card
Interest Rates and Interest ChargesAnnual 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
APR for Cash Advances
21.99% This APR will vary with the market based on the Prime Rate
Penalty APR and When it Applies
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; or4. 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.
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
FeesSet-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. dollarsPenalty 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
APR for Cash Advances
This section discloses the interest paid for
cash advances, such as withdrawing cash from an ATM using a credit
card. Cash advance fees may also apply
What is the APR for cash advances for this credit
card offer?21.99%
Interest Rates and Interest ChargesAnnual 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
APR for Cash Advances
21.99% This APR will vary with the market based on the Prime Rate
Penalty APR and When it Applies
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; or4. 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.
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
FeesSet-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. dollarsPenalty 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
Penalty APR and When it Applies
This section discloses the penalty APR, as well
as the penalty terms that trigger the penalty
APR to take effect
• Penalty APR is the interest rate charged on new transactions if the penalty terms in the credit card contract are triggered
What is the Penalty APR for this credit card offer?
21.99%
Credit Card
Interest Rates and Interest ChargesAnnual 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
APR for Cash Advances
21.99% This APR will vary with the market based on the Prime Rate
Penalty APR and When it Applies
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; or4. 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.
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
FeesSet-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. dollarsPenalty 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
How To Avoid Paying
Interest on Purchases
This section explains how you can avoid
interest charges on a credit cardHow can a cardholder
avoid paying interest on a credit card?By paying credit card
bills in full by the due date
Credit Card
Interest Rates and Interest ChargesAnnual 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
APR for Cash Advances
21.99% This APR will vary with the market based on the Prime Rate
Penalty APR and When it Applies
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; or4. 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.
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
FeesSet-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. dollarsPenalty 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
Minimum Interest Charge
Credit card companies often have
a minimum interest amount. These
charges typically range from $0.50 to
$2 per month and are disclosed in this
section of the credit card offer
What is the minimum interest charge for this
credit card?$1.50
Credit Card
Interest Rates and Interest ChargesAnnual 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
APR for Cash Advances
21.99% This APR will vary with the market based on the Prime Rate
Penalty APR and When it Applies
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; or4. 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.
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
FeesSet-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. dollarsPenalty 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
For Credit Card Tips from the
Federal Reserve Board
This section directs consumers to the Federal Reserve
website to obtain more information about credit cards
Interest Rates and Interest ChargesAnnual 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
APR for Cash Advances
21.99% This APR will vary with the market based on the Prime Rate
Penalty APR and When it Applies
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; or4. 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.
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
FeesSet-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. dollarsPenalty 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
Set-up and Maintenance FeesThis section discloses
any set-up and maintenance fees for the card, which can include annual fees, account set-up fees, participation fees, and additional card
fees
• Annual fee is a yearly fee that may be charged for having a credit card What is the annual fee
for this credit card?
$20
Credit Card
Interest Rates and Interest ChargesAnnual 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
APR for Cash Advances
21.99% This APR will vary with the market based on the Prime Rate
Penalty APR and When it Applies
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; or4. 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.
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
FeesSet-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. dollarsPenalty 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
Transcation FeesThis section discloses any transaction fees for the card, which can include balance transfer fees, cash advance fees, and foreign transaction
fees What is the fee for cash advances for this card?
$5 or 3% of the amount of each cash advance (whichever is
greater)
Interest Rates and Interest ChargesAnnual 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
APR for Cash Advances
21.99% This APR will vary with the market based on the Prime Rate
Penalty APR and When it Applies
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; or4. 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.
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
FeesSet-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. dollarsPenalty 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
Penalty FeesThis section discloses the penalty fees for the card, which can
include late-payment, over-the-limit, and returned payment
fees
• Late payment fee is charged when a cardholder does not make the minimum monthly payment by the due date• Over-the-limit fee
is charged if the account balance goes over the set credit limit
Does this card have an over-the limit fee?
Yes, the over-the-limit fee is $29.
Credit Card
Interest Rates and Interest ChargesAnnual 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
APR for Cash Advances
21.99% This APR will vary with the market based on the Prime Rate
Penalty APR and When it Applies
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; or4. 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.
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
FeesSet-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. dollarsPenalty 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
How we calculate your balance
Credit card companies can use
one of several methods to calculate
the outstanding balance on a credit card. The method
used is disclosed in this section
What method is used to calculate the balance on
this card?Average daily balance (including new
purchases)
Interest Rates and Interest ChargesAnnual 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
APR for Cash Advances
21.99% This APR will vary with the market based on the Prime Rate
Penalty APR and When it Applies
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; or4. 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.
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
FeesSet-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. dollarsPenalty 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
Loss of Introductory APRIf the card has an
introductory rate, this area will list how the lower introductory rate can be lost
How can the introductory APR be lost on this card?
If the cardholder is more than 60 days
late in paying the billWhat APR will the
cardholder be charged if the introductory rate
is lost?The Penalty APR of 28.99%
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 Card
1.4.1.G1
Credit Card Chaos
• The educator will identify terms associated with a credit card offer
• Identify which term is true on your provided credit card offer and move to that poster
• In a small group, define the term on the poster
• As a class, discuss which credit card characteristic is better for a consumer and why
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 Card
1.4.1.G1
Credit Card Chaos
• Fixed-rate APR for Purchases vs. Variable-rate APR for Purchases
• Introductory Rate vs. No Introductory Rate• APR for Purchases Greater than or Equal to 15% vs.
APR for Purchases Less than 15%• No Minimum Interest Charge vs Minimum Interest
Charge• Annual Fee vs. No Annual Fee• Balance Transfer Fee vs. No Balance Transfer Fee• Late Payment Fees vs. No Late Payment Fees
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 Card
1.4.1.G1
Credit Card Benefits
• Research benefits that may be received from the card– Cash rebates– Warranties for items purchased with the card– Travel accident insurance– Frequent flyer miles
• Make sure to know all terms and conditions of card benefits
• Cards that offer benefits may charge fees or higher interest rates
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 Card
1.4.1.G1
Receiving a Credit Card
1. Compare credit card offers and determine which card to apply for
2. Complete a credit application– A form requesting information about a
person’s ability to repay and the applicant’s age
– Can be completed through the mail, the internet or over the phone
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 Card
1.4.1.G1
Receiving a Credit Card
3. Lenders conduct a credit investigation– A comparison of information on credit
application to information on a credit report
4. Applicants may or may not be approved for the card they apply for– Approval depends on the applicant's
credit history
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 Card
1.4.1.G1
Pre-Approved Credit Card Applications
• Credit card companies send pre-approved credit card applications in the mail– If an individual is pre-approved for that
particular card, they have passed the initial credit check
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 Card
1.4.1.G1
Credit Card Statements
• Credit card statements outline important information about the card
• The 2009 CARD Act required credit card companies to include specific information about a card account in the statement
Andrew’s Credit Card StatementPlease help Andrew interpret his credit card
statement.
TransactionsReference Number
Trans Date
Post Date
Description of Transaction or Credit Amount
XXXX1 2/22 2/23 Store #1 $529.57
XXXX2 2/25 2/26 Payment $450.00 -
XXXX3 2/26 2/26 Cash Advance $318.00
XXXX4 3/15 3/17 Balance Transfer $785.00
FeesXXXX5 2/23 2/23 Late Fee $35.00
XXXX6 2/27 2/27 Balance Transfer Fee $23.55
XXXX7 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 Calculation
Type of Balance Annual Percentage Rate (APR)
Balance Subject to Interest Rate Interest Charge
Purchases 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
Summary of Account Activity
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
13
TransactionsReference Number
Trans Date
Post Date
Description of Transaction or Credit Amount
XXXX1 2/22 2/23 Store #1 $529.57
XXXX2 2/25 2/26 Payment $450.00 -
XXXX3 2/26 2/26 Cash Advance $318.00
XXXX4 3/15 3/17 Balance Transfer $785.00
FeesXXXX5 2/23 2/23 Late Fee $35.00
XXXX6 2/27 2/27 Balance Transfer Fee $23.55
XXXX7 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 Calculation
Type of Balance Annual Percentage Rate (APR)
Balance Subject to Interest Rate Interest Charge
Purchases 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
10
9
8
7
6
2
4
5
13Payment Information
This 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
TransactionsReference Number
Trans Date
Post Date
Description of Transaction or Credit Amount
XXXX1 2/22 2/23 Store #1 $529.57
XXXX2 2/25 2/26 Payment $450.00 -
XXXX3 2/26 2/26 Cash Advance $318.00
XXXX4 3/15 3/17 Balance Transfer $785.00
FeesXXXX5 2/23 2/23 Late Fee $35.00
XXXX6 2/27 2/27 Balance Transfer Fee $23.55
XXXX7 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 Calculation
Type of Balance Annual Percentage Rate (APR)
Balance Subject to Interest Rate Interest Charge
Purchases 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
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13Late Payment
WarningThis section states any additional fees and the
higher interest rate that may be charged if
a payment is late
How much is Andrew’s late payment fee?
$35
TransactionsReference Number
Trans Date
Post Date
Description of Transaction or Credit Amount
XXXX1 2/22 2/23 Store #1 $529.57
XXXX2 2/25 2/26 Payment $450.00 -
XXXX3 2/26 2/26 Cash Advance $318.00
XXXX4 3/15 3/17 Balance Transfer $785.00
FeesXXXX5 2/23 2/23 Late Fee $35.00
XXXX6 2/27 2/27 Balance Transfer Fee $23.55
XXXX7 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 Calculation
Type of Balance Annual Percentage Rate (APR)
Balance Subject to Interest Rate Interest Charge
Purchases 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
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9
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6
2
4
5
13
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
TransactionsReference Number
Trans Date
Post Date
Description of Transaction or Credit Amount
XXXX1 2/22 2/23 Store #1 $529.57
XXXX2 2/25 2/26 Payment $450.00 -
XXXX3 2/26 2/26 Cash Advance $318.00
XXXX4 3/15 3/17 Balance Transfer $785.00
FeesXXXX5 2/23 2/23 Late Fee $35.00
XXXX6 2/27 2/27 Balance Transfer Fee $23.55
XXXX7 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 Calculation
Type of Balance Annual Percentage Rate (APR)
Balance Subject to Interest Rate Interest Charge
Purchases 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
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2
4
5
13Notice 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.
TransactionsReference Number
Trans Date
Post Date
Description of Transaction or Credit Amount
XXXX1 2/22 2/23 Store #1 $529.57
XXXX2 2/25 2/26 Payment $450.00 -
XXXX3 2/26 2/26 Cash Advance $318.00
XXXX4 3/15 3/17 Balance Transfer $785.00
FeesXXXX5 2/23 2/23 Late Fee $35.00
XXXX6 2/27 2/27 Balance Transfer Fee $23.55
XXXX7 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 Calculation
Type of Balance Annual Percentage Rate (APR)
Balance Subject to Interest Rate Interest Charge
Purchases 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
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2
4
5
13
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 account
Other 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%.
TransactionsReference Number
Trans Date
Post Date
Description of Transaction or Credit Amount
XXXX1 2/22 2/23 Store #1 $529.57
XXXX2 2/25 2/26 Payment $450.00 -
XXXX3 2/26 2/26 Cash Advance $318.00
XXXX4 3/15 3/17 Balance Transfer $785.00
FeesXXXX5 2/23 2/23 Late Fee $35.00
XXXX6 2/27 2/27 Balance Transfer Fee $23.55
XXXX7 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 Calculation
Type of Balance Annual Percentage Rate (APR)
Balance Subject to Interest Rate Interest Charge
Purchases 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
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2
4
5
13
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
TransactionsReference Number
Trans Date
Post Date
Description of Transaction or Credit Amount
XXXX1 2/22 2/23 Store #1 $529.57
XXXX2 2/25 2/26 Payment $450.00 -
XXXX3 2/26 2/26 Cash Advance $318.00
XXXX4 3/15 3/17 Balance Transfer $785.00
FeesXXXX5 2/23 2/23 Late Fee $35.00
XXXX6 2/27 2/27 Balance Transfer Fee $23.55
XXXX7 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 Calculation
Type of Balance Annual Percentage Rate (APR)
Balance Subject to Interest Rate Interest Charge
Purchases 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
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4
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13
Fees and Interest Charged
Credit card issuers must list the fees and
interest charges separately on the
monthly statement. Interest charges must
be listed by type of transaction
Did Andrew pay a late fee?
Yes, he paid $35.00 for a late fee.
TransactionsReference Number
Trans Date
Post Date
Description of Transaction or Credit Amount
XXXX1 2/22 2/23 Store #1 $529.57
XXXX2 2/25 2/26 Payment $450.00 -
XXXX3 2/26 2/26 Cash Advance $318.00
XXXX4 3/15 3/17 Balance Transfer $785.00
FeesXXXX5 2/23 2/23 Late Fee $35.00
XXXX6 2/27 2/27 Balance Transfer Fee $23.55
XXXX7 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 Calculation
Type of Balance Annual Percentage Rate (APR)
Balance Subject to Interest Rate Interest Charge
Purchases 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
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2
4
5
13
Year-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
TransactionsReference Number
Trans Date
Post Date
Description of Transaction or Credit Amount
XXXX1 2/22 2/23 Store #1 $529.57
XXXX2 2/25 2/26 Payment $450.00 -
XXXX3 2/26 2/26 Cash Advance $318.00
XXXX4 3/15 3/17 Balance Transfer $785.00
FeesXXXX5 2/23 2/23 Late Fee $35.00
XXXX6 2/27 2/27 Balance Transfer Fee $23.55
XXXX7 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 Calculation
Type of Balance Annual Percentage Rate (APR)
Balance Subject to Interest Rate Interest Charge
Purchases 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
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2
4
5
13
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%
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 Card
1.4.1.G1
Cardholder Protections & Rights
Truth in Lending Act
Limits liability for unauthorized credit card
charges to $50.00 per cardMust write a letter within 60 days of the first bill containing the errorIf a credit card number is used fraudulently
but the card itself was not used, the individual has no personal liability
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 Card
1.4.1.G1
Cardholder Protections & Rights
– To receive a credit card, consumers must be 21 years of age or older• Consumers under 21 have to either have a co-signer or
show documentation of sufficient income to make payments
• If someone agrees to be a co-signer on an account, they are equally responsible for the loan
– Interest rates on existing balances generally can’t be raised unless a cardholder is 60 days or more past due
2009 CARD Act
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 Card
1.4.1.G1
Cardholder Protections & Rights
–Must be notified of any significant changes in rates and fees at least 45 days before the changes take effect• Any changes made to an account can only apply to
future transactions (new charges) • Have the option of closing the account before the
changes go into effect
– Cardholders now have to “opt-in” to allowing transactions that take them over their credit limit
2009 CARD Act
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 Card
1.4.1.G1
Cardholder Protections & Rights
– Credit card issuers are required to send a monthly statement at least 21 days before a credit card payment is due
– Credit card payment due dates must be consistent month to month
2009 CARD Act
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 Card
1.4.1.G1
Cardholder Protections & Rights
– Credit card companies cannot increase rates for the first 12 months after an account is open unless:• The card has a variable interest rate• The cardholder is more than 60 days late in
paying their bill• The card has an introductory rate (the
introductory rate must be in place for at least 6 months and then the rate can increase)
2009 CARD Act
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 Card
1.4.1.G1
Cardholder Protections & Rights
– Some set-up and maintenance fees are charged before the card is used
– This may reduce the amount of credit initially available• These non-penalty fees cannot exceed 25% of the initial
credit limit • For example, if a card has a credit limit of $1,000 the
total fees for the first year (not including penalty fees) cannot exceed $250
2009 CARD Act
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 Card
1.4.1.G1
Credit Card Safety Tips
Sign card with a signature and “Please see ID”
Do not leave cards lying around, and report lost or stolen cards
promptly
Close unwanted accounts by writing and
phone, then cut up the card
Do not give out account
numbers unless making a purchase
Keep a list of all cards, account numbers, and
phone lists separate from
cards
Shred all pre-approved credit
card offers, applications, or
solicitations
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 Card
1.4.1.G1
Online Shopping Safety Tips
1. Use a temporary credit card number– This is a one-time use only number– A set amount will be charged to your
credit card– Then a number will be given to you to
do your shopping
2. Use a credit card rather than a debit card– Fair Credit Billing Act
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 Card
1.4.1.G1
Fair Credit Billing Act
• Helps to protect consumers while using a credit card to make purchases
• Allows the consumer to not pay for a product or service for which the consumer has a complaint
• If products are not delivered or if it is not what the consumer requested, any amount of money that was credited to the card above the $50.00 fee that consumers are responsible for will be issued back
• Debit cards do not have the same protection
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 Card
1.4.1.G1
Summary
A 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
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 Card
1.4.1.G1
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 errors
Consumers have many protections and rights in
regards to credit card use