CREDIT CARD VOCABULARY MATCH UP

Match the terms with their definition

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

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

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-

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

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– Money is immediately withdrawn from the cardholders checking account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

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 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)

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

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 History – Positive and Negative Card Use

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

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

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

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

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

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 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 CardInterest Rates and Interest Charges

Annual Percentage Rate (APR) for Purchases

12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.

APR for Balance Transfers

15.99% This APR will vary with the market based on the Prime Rate

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. dollars

Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000

Over-the-limit: $29 Returned Payment: $35

* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill

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. dollars

Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000

Over-the-limit: $29 Returned Payment: $35

* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill

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. dollars

Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000

Over-the-limit: $29 Returned Payment: $35

* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill

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. dollars

Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000

Over-the-limit: $29 Returned Payment: $35

* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill

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. dollars

Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000

Over-the-limit: $29 Returned Payment: $35

* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill

APR for Cash AdvancesThis section discloses the

interest paid for cash advances, such as withdrawing cash from an ATM using a

credit card. Cash advance fees may

also applyWhat 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. dollars

Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000

Over-the-limit: $29 Returned Payment: $35

* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill

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 triggeredWhat 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. dollars

Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000

Over-the-limit: $29 Returned Payment: $35

* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill

How To Avoid Paying

Interest on PurchasesThis section

explains how you can avoid interest

charges on a credit card

How 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. dollars

Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000

Over-the-limit: $29 Returned Payment: $35

* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill

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 offerWhat 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. dollars

Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000

Over-the-limit: $29 Returned Payment: $35

* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill

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. dollars

Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000

Over-the-limit: $29 Returned Payment: $35

* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill

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. dollars

Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000

Over-the-limit: $29 Returned Payment: $35

* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill

Transcation Fees

This 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. dollars

Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000

Over-the-limit: $29 Returned Payment: $35

* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill

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. dollars

Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000

Over-the-limit: $29 Returned Payment: $35

* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill

How we calculate your

balanceCredit 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. dollars

Penalty Fees Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000

Over-the-limit: $29 Returned Payment: $35

* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill

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%

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• Compare credit card offers and determine

which card to apply for.

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

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 protect consumers

while using a credit card to make purchases

Defining Credit Terms • Annual percentage rate (APR): The cost of a loan over a full

year expressed as a percentage.

• Bankruptcy: Legally getting out of having to repay debts; admitting and accepting financial failure. Destroys credit rating for seven -11 years;

• Capital: Assets in the form of cash and securities available to spend and invest

• Revolving Charge Account: Used to purchase goods or services in exchange for a promise to pay for the item(s) later.

CREDIT WORTHINESS3 C’s Of Credit to determine if you are fit to have a credit card

*Capacity: Ability to fulfill obligations evidenced by diligence at work and prospects of continuing employment or income. Can you repay the Loan?

*Character: The quality of one's reputation or name; financial or economic trustworthiness. Will you repay the loan?

*Collateral: Security on a loan (house, jewelry, car, etc.) What you have in case you do not pay the loan

• Cosigner: Second signer who guarantees to pay for the loan if the first party ( person who obtains the loan) defaults.

• Credit: A loan that allows immediate use of products or services in exchange for a promise to pay in the future.

• Credit Bureau: A private corporation that is a clearing house for consumer credit information. Collect information on credit practices of individuals.

• Credit rating (FICO): Creditor's evaluation of a debtor's willingness and ability to pay debts based on past performance. Ie: how promptly a person pays his/her debts. Ranges from 350 to 850.– Paying bills on time builds a good credit rating

• Default Failure to repay a loan

Finance Charge The total dollar amount that it costs a consumer to use credit.

TV Paid with Cash TV Paid with Credit Card• Regularly $400.00• On Sale $360.00• No Interest

• Total Cost $360

• 21% A.P.R.• 18 mo. pmts• $26.00 per mo.• $68.00 interest• Months financed X monthly

payment.

• Total Cost $468

• Garnishment Your employer pays your creditor before you receive your paycheck.

• Interest Price paid for the use of rented or borrowed money.

• Principal The original amount of a loan on which interest is based.

Groceries on CreditPrinciple = $125.00Interest = $14.00Final Cost = $139.00

Clothing on CreditPrinciple = $350.00Interest = $137.00Final Cost = $487.00

When you make the last payment, will the stereo, clothing, food you purchased be long gone?

3 Main types of credit:– Sales Credit• Credit you receive when you make a purchase and

promise to pay later.

– Cash Credit• Credit you receive when you borrow cash and promise

to pay it back later.– Service Credit• Credit given for immediate service one receives

(utilities, dentist, hospital, etc.) that will be payed for later.