april 25, 2014 entry task: what does apr stand for? what does it mean? target: select a credit card...
TRANSCRIPT
April 25, 2014
• Entry task: What does APR stand for? What does it mean?
• Target: Select a credit card based on terms and conditions.
Tip of the Day!
Today
• Finish ABC’s of Credit Worksheet– About 20 minutes to finish??
• Go over Credit PowerPoint
April 28, 2014
• Entry task: Describe what you should look for in a credit card.
• Target: Select a credit card based on terms and conditions.
•
The ABCs ofCredit Card Finance
Essential Facts for Students
2005 – 2006
Carol A. Carolan, Ph.D.
Essential Facts … Two Groups of Information
Credit Card Costs Credit Card Behaviors
2
Credit Card Costs
3
Annual Fees Interest
Annual Percentage Rate (APR)
Cash Advances Convenience Checks Penalty Rates
4
Low Interest Teaser Rates Balance Transfers Late Fees Over Credit Limit Fees Bounced Check Fees Currency Conversion Fees
5
Choosing aCredit Card
6
Look For:
A Low Annual Percentage Rate (APR)No Annual FeeA Long Grace PeriodLow Penalty Rates
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Types of Credit Card Users
Convenience Users “Revolvers”
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Dos and Don’ts
9
One Card Student Loans for Tuition Wants vs. Needs Convenience Pay More Than the MMP Be a Manager
10
Don’t Skip Payments Pay on Time Don’t Exceed Your Credit Limit Cash Advances Convenience Checks Be Wary of Teaser Rates
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Credit Card Shuffle Low Credit Limit Quickly Mail Payments Save Receipts Change of Address Lost and Stolen Cards
12
Beware of credit schemes ZERO DOWN, ZERO
INTEREST, NO PAYMENTS UNTIL 2016!
Interest can still get you!
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There’s Alwaysa Solution
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Getting Out of Debt
Don’t Deny the Problem Stop Using Your Card Contact Your Credit Card Issuer Get a Job Reduce Expenses Talk about Your Problems Debt Consolidation
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Credit Reports& Credit Scores
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Credit Report Collection of Information Financial Report Card Lenders Use this Information 3 Main Credit Reporting Agencies Regularly Review Your Credit Reports
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Credit Score Numeric Value Applied to a Credit
Report Usually Called a FICO Score Higher is Better
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What Goes Into OurCredit Scores?
Pay Bills on Time Unresolved Debt Number of Cards and Their Balances How Long Quest for New Credit
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Consequences of Irresponsible
Credit Card Use
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High Interest Rates Difficulty Renting an Apartment Denied Employment Graduate School Rejection Higher Insurance Premiums Big Bucks for Cell Phones
Denial of Credit
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Identity Theft
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Signs of Identity Theft
Card/Statement Not Requested Statement Not Received Unauthorized Charges Denied Credit Debt Collectors
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Minimize the Risk…
Keep Personal Information Personal Don’t Use Social Security Number Leave Social Security Card Home Carry Only What’s Needed Photo ID Credit Card Know Your Billing Cycles
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Shred Receipts Use the Post Office Creative Passwords Purchase on Secure Websites Keep Personal Information Safe Review Credit Reports Computer Virus Protection
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Victims of Identity Theft Should… Contact the Big Three
Experian Equfax Transunion
Fraud Alert Order Free Credit Reports & Review Call Fraud Departments Close Fraudulent Accounts File a Police Report Contact the FTC
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