CREDIT CARDSU L T I M A T E G U I D E T O

What you need to know

kardgetkard.com

TOTAL USCREDITCARD DEBT:

$733TRILLION

Yet 2/3 of Americans don't know howcredit cards work.The cost of living in this country has rapidly outpaced

the growth of our paychecks for the past 12 years. The

increasing number of credit card transactions means one

thing: Americans are spending money they don't have.

A credit card is a tool. Without proper understanding, it

can be an expensive mistake. Its worth it to learn more.

For those who want to be informed, know that you are

not alone.

kard

C R E D I T C A R D S C O N T R I B U T ET O Y O U R C R E D I T S C O R E .

A credit card lets you borrow money in exchange for a

percentage of interest on any outstanding debt at the end

of each billing cycle. The amount you are allowed to

spend is called your credit line.

WHAT IS ACREDIT CARD?

This three digit number determines how likely you are

to pay your bills...and pay them on time. It will affect your

interest rates and ability to get a loan.

kard

IN FULLYou can pay in full by not

carrying a balance forward to

the next month. Make sure to

wait until the billing cycle

ends so it gets reported to a

credit agency.

Sometimes you need to make

a big purchase or have an

emergency. Credit cards let

you carry a balance from

month to month. Beware of

compounding interest.

OVER TIMEP A Y M E N T S

kard

Your Annual Percentage Rate or APR tells you your interest rate. This is determined by your credit score.

Credit card interest is compounded. This means that any interest accrued beforehand will be added to the

amount you originally borrowed so that your debt grows exponentially. Most credit card interest is

compounded daily.

COMPOUNDINGINTEREST

C R E D I T C A R D C O M P A N I E S M A K E M O N E Y O F F

Interest is what you pay for borrowing money.

kard

FEESThey add up.

Annual fees are the costs of simply owning a credit card.

Not all cards have one.

Late fees are charged when you fail to pay the minimum

payment before the due date.

Balance transfer fees are charged when you move your

balance from one card to another.

Cash advance fees are charges you have to pay for

borrowing cash against your credit card.

Foreign transaction fees are extra charges when the card

is used outside the country it was issued in.

Over-the-limit fees occur when your balance exceeds

your credit limit.

C R E D I T C A R D C O M P A N I E S M A K E M O N E Y O F F

kard

GRACE PERIODU N D E R S T A N D I N G Y O U R

The Grace Period is the time between the statement’s closing date and the statement’s due date.

You can avoid all interest charges by paying your statement balance in full during this time.

Statement closes Statement due

Grace Period

June July

No interest if paid in full!

kard

SO WHAT KIND OFCREDIT CARDS

ARE OUT THERE?Well, there's a lot.

kard

CREDITCARDS THATBUILD ORREBUILDCREDIT

These cards are help you build creditfor the first time or improve yourcredit standing.

Student credit cards are typically meant for college

students who have little to no credit history and are

easier to qualify for.

Secured credit cards generally require a security deposit

as collateral. Once you upgrade to an unsecured card, or

close the account in good standing, you get the deposit

back.

Look for:

- Automatic credit limit increases.

- Earning interest on your security deposit.

kard

CREDITCARDS THATSAVE ONINTEREST

These are known as unsecured,meaning you don’t have to put downa security deposit. This type of cardis useful if you don’t always pay offyour balance.

Balance transfer cards let you transfer a balance from a

high interest credit card to one with a lower interest rate.

Low interest credit cards offer either a low introductory

APR that might jump to a higher rate, or a single low

fixed-rate APR.

Look for:

- Personal debt payoff planner tool

- No late fees or penalty APR

kard

CREDITCARDS THAT OFFERREWARDS

This might be a good fit for you if youpay off your balance every month.These usually have higher APR’s but give you points, miles, or cash backon every dollar you spend.

Cashback credit cards earn cash for making purchases.

While the typical return is 1% of total spending, some

offer higher cash back percentages for consistent use,

select categories, or select merchants.

General rewards points cards earn points instead of cash

that can be used in a reward program. They offer a variety

of items to trade in points for including plane tickets,

hotel stays, electronics, gift cards and more.

Hotel or travel points cards also earn points but are

specific to certain hotels and airlines. You can exchange

those points for hotel stays and plane tickets. These cards

are best for frequent travelers.

Look for:

- Lower required spending.

- No expiration date on rewards.

kard

4 EASY STEPS1. Check your credit score. This will ultimately decide what

credit card you are eligible for. Get free reports at

AnnualCreditReport.com, a federally authorized site.

2. Determine which kind of credit card you need. Look above.

3 . Ask the right questions.

Does it meet my spending needs?

Is it the right type of card for me?

Is the card widely accepted?

What features, services and security options are available?

4. Apply to the credit card with the highest overall value.

the card that is best for you.

PICK

kard

SIGNUPBONUSES*

Some credit cards offer cash

bonuses for spending a

certain amount before a

certain date.

Others reduce or eliminate

the APR or other fees for the

first few months.

PROMOTIONALFINANCING*

S P E C I A L O F F E R S

* A L W A Y S R E A D T H E T E R M SA N D C O N D I T I O N S

kard

CARD-LINKED OFFERSC R E D I T C A R D C O M P A N I E S A R EM O V I N G A W A Y F R O M C A T E G O R YR E W A R D S T O M E R C H A N TS P E C I F I C R E W A R D S .

2 X O ND I N I N G

C A R D - L I N K E D O F F E R S M U S T B EM A N U A L L Y A C T I V A T E D O N T H E

R E W A R D S S E C T I O N O F Y O U R C R E D I T C A R D A C C O U N T .

kard

THANK YOUW E H O P E Y O U J O I N U S

T H I S G U I D E I S B R O U G H T T O Y O U B Y

kard

REFERENCEShttp://www.dartmouth.edu/~alusardi/Papers/Lusardi_Tufano.pdf

http://www.comparecards.com/pdf/ebook/Ultimate_Guide_eBook_v1.0.pdf

https://www.nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household/

https://www.creditkarma.com/faq/what-is-a-good-credit-score

https://www.discover.com/credit-cards/resources/credit-cards-101/15-common-credit-card-questions

https://www.nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household/

https://www.citicards.com/cards/wv/html/cm/student/credit-card-abcs/how-credit-cards-work/finance-

charges-and-fees.html

http://www.creditcards.com/credit-card-news/help/types-of-credit-cards-6000.php

https://www.nerdwallet.com/blog/credit-cards/how-to-pick-the-best-credit-card-for-you-4-easy-steps/

https://www.getkard.com/blog/2016/04/12/card-linked-offers/

kardgetkard.com