CREDIT

CARDS
LOW BALANCE, HIGH MONTHLY PAYMENT BALANCE: $100 INTEREST RATE: 16% MONTHLY PAYMENT: $50 3 MONTHS TO PAY OFF, INTEREST & FEES: $52 TOTAL COST: $152

Credit Card Company Tactics

A customer's desired card design, some tempting benets, and their social conscious (some banks offer a percentage of money to organizations) are all aspects that lure them into a specic bank company, but once they're there, all the banks tactics keep them indebted and paying the bank. Minimum Monthly Payment sets a low standard rate so people only have to pay that, but then they won't get rid of their debt, therefore end up paying a lot of interest to the bank. Low Introductory Rates make a bank's rate seem very low when a customer rst joins, then raises it after a given amount of the time, and the customers can't always keep up so they get charged. Over-the-Limit Fee is stacked on when a customer exceeds their credit limit. Late Fee is a fee charged if a customer doesn't make a payment on time.

Smartest Ways to Use Credit Cards

Don't borrow more than you can pay back. Pay your credit card balance in full so you don't get charged extra fees and interest. Don't use all your credit, banks usually set a higher amount than you can pay so you get indebted. Make all your payments on time. Keep an account open a long time. It makes you appear responsible and looks good in credit history. By doing all of these steps, your credit score will greatly improve and will help you get loans, nancial aid and better payments for houses, cars, education etc. Be money smart!

TYLER MAUGHAN, KEANA LOCK, KAREN RUIZ, BECCA MYERS, DAVID RUIZ, MONICA ZIMMERER

THE TRUTH ABOUT CREDIT CARD COMPANIES AND THE BEST WAYS TO RESPONSIBLY USE CREDIT CARDS

Pros and Cons of Credit Cards

HIGH BALANCE, LOW MONTHLY PAYMENT BALANCE: $10,000 INTEREST RATE: 16% MONTHLY PAYMENT: $200 83 MONTHS TO PAY OFF, INTEREST & FEES: $6,939 TOTAL COST: $16,939

Pros

Cons

Allow you to purchase something you can't afford all at once. Build a credit score for future reference.

Interest rates will eventually add up to you spending more than what you would have if you paid in full. All of the tactics companies use to get more money out of their customers. "Imaginary money"; you don't get a full grasp of how much you're spending since you don't physically see the money. Missing payments will lower your credit score, making it harder to get loans and more.

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HIGH BALANCE, HIGH MONTHLY PAYMENT BALANCE: $10,000 INTEREST RATE: 16% MONTHLY PAYMENT: $5,000 3 MONTHS TO PAY OFF INTEREST & FEES: $254 TOTAL COST: $10,254

Protects your money; if the company sees suspicious purchases, it will deny it until you verify that it is you buying. Provides an easier way to pay for things without being physically there, ex: reservations, online buys, etc.