2.6.3.

G1

Understanding
Credit Cards
Advanced Level

Take Charge Today August 2013 Understanding Credit Cards Slide 1

Funded 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

2.6.3.G1

What is a Credit Card?

Credit card - a
plastic card that
you can use to
access a line of
credit that has
been
established in
advance

A person can
borrow up to an
established
credit limit.

Credit limit
maximum dollar
amount that can
be borrowed.

Is a credit card open-end or closed-end credit?

Take Charge Today August 2013 Understanding Credit Cards Slide 2
Funded 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

2.6.3.G1

Credit Card Interest

Interest is charged each

month the balance is not paid
in full

Rate at which interest is

charged is referred to as:
Annual Percentage Rate (APR)

The cost of credit expressed as

a yearly interest rate
Take Charge Today August 2013 Understanding Credit Cards Slide 3
Funded 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

2.6.3.G1

Minimum Payment

A minimum payment is due

each month the card has a
balance

To prepare for her first semester of college, Miranda purchased a new

computer for $1,000 and textbooks for $500, spending a total of $1,500
on her credit card charging 15% APR. How much would Miranda pay in
interest if she makes the minimum payment?

Full Payment
Partial
Payment
Minimum
Payment

Total
Total amount
amount of
paid
interest paid
$0
$1,500

Payment
Made

Time to pay
off card

$1,500

1 month

$135

1 year

$125

$1,625

$30

11 years

$1,413

$2,913

Take Charge Today August 2013 Understanding Credit Cards Slide 4

Funded 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 = Helpful Financial Management

Tool

2.6.3.G1

if managed responsibly

Develop
positive
credit
history

Convenient
payment
tool

Credit card
safer for
online
shopping

Protected
from
unauthorize
d charges

Credit card
bonuses

Take Charge Today August 2013 Understanding Credit Cards Slide 5

Funded 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

Develop a
Positive Credit
History

Credit card use can

have a positive or
negative impact on
your credit history

2.6.3.G1

Follow these positive behaviors:

Pay credit
card balances
in full every
month

Pay credit
card bills on
time

Be conscious
of how credit
cards affect
your credit
history

Check the
monthly
credit card
statement for
errors

Take Charge Today August 2013 Understanding Credit Cards Slide 6

Funded 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

2.6.3.G1

Convenient Payment Tool

No need to carry large
amounts of cash

How is a
credit card a
convenient
payment
tool?

Useful in emergencies
Often required to hold a
reservation

Be conscientious of
all credit card
purchases to not
overspend!

Take Charge Today August 2013 Understanding Credit Cards Slide 7

Funded 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

2.6.3.G1

Maximum Liability

Protect Yourself from

Unauthorized Charges

$50

Report lost or
stolen cards
immediately!

Unauthorized
use

Check your
statements
monthly!
Take Charge Today August 2013 Understanding Credit Cards Slide 8
Funded 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

$0
If a lost credit
card is reported
before it is
fraudulently
used
If the credit card
number is used
fraudulently, but
the credit card
itself is not used

2.6.3.G1

Safer Online Shopping

More
protection
against
fraud

What is the
difference
between a
credit card and
a debit card?

Credit
cards are
safer than
debit
cards
Less
liability for
unauthoriz
ed credit
card
charges

Money is
not
connected
to
depository
institution
account

Take Charge Today August 2013 Understanding Credit Cards Slide 9

Funded 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

2.6.3.G1

Should you choose debit or credit at a point of

sale (POS)?
If you pick
credit
Point of
Sale

A receipt must be signed

(optional if purchase is under
$25)

Potential benefit: Extra liability

protection from fraudulent
charges

Must enter the cards personal

identification number (PIN)

If you pick
debit

Potential benefit: Option to

withdraw cash from your
depository institution account
for no fee

Take Charge Today August 2013 Understanding Credit Cards Slide 10

Funded 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

2.6.3.G1

Additional Benefits
May charge
additional fees
or higher
interest rates
Carefully
evaluate if the
benefits
outweigh the
cost

Cash
rebat
es

Rewards,
Rewards,
Rewards

Travel
insuranc
e

Airline
miles

Warranti
es for
items
purchase
d

Would you be willing to pay

higher/additional
fees or higher interest rates to

Take Charge Today August 2013 Understanding Credit Cards Slide 11

Funded 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

2.6.3.G1

Credit Cards
Advantages & Disadvantages

How many
advantage
s can you
think of?

How many
disadvanta
ges can
you think
of?

Take Charge Today August 2013 Understanding Credit Cards Slide 12

Funded 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

2.6.3.G1

Credit Cards
Advantages & Disadvantages
Convenient payment tool
Useful 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

Interest can be costly when a

balance is revolved
Additional penalty fees may
apply
Tempting to overspend
If not used responsibly, it will
have a negative impact on your
credit score

Take Charge Today August 2013 Understanding Credit Cards Slide 13

Funded 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

2.6.3.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

Called the Schumer Box

Take Charge Today August 2013 Understanding Credit Cards Slide 14
Funded 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

2.6.3.G1
Interest Rates and Interest Charges

Credit cards may

charge many
different types of
interest rates
Annual Percentage Rate
(APR) for Purchases
Interest rate paid for
purchases
Multiple interest rates may
be listed
o final interest rate may
depend on
creditworthiness of
applicant

Annual Percentage
Rate (APR) for
Purchases
APR for Balance
Transfers
APR for Cash
Advances
Penalty APR and
When it Applies

How to Avoid
Paying Interest on
Purchases
Minimum Interest
Charge
For Credit Card Tips
from the Federal
Reserve Board

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

21.99%

This APR will vary with the market based on the Prime Rate
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; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APRs are increased for any of these
reasons, the Penalty APR will apply until you make six consecutive minimum payments
when due.
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.
If you are charged interest, the charge will be no less than $1.50.
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

Fees
Set-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

Take Charge Today August 2013 Understanding Credit Cards Slide 15

Funded 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

2.6.3.G1

Introductory Rate
Introductory rate: APR
that may be charged
(usually increased) after the
introductory period ends
Not all credit cards have an
introductory rate

Interest 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
APR for Cash
Advances
Penalty APR and
When it Applies

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

21.99%
This APR will vary with the market based on the Prime Rate

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; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APRs 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
Minimum Interest
Charge
For Credit Card Tips
from the Federal
Reserve Board

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.

Set-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

If you are charged interest, the charge will be no less than $1.50.
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

Fees

How does credit worthiness

impact APR?
It will influence if a person
receives a credit card and
the APR. APR will by higher if
a person has a poor credit
history.

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

Take Charge Today August 2013 Understanding Credit Cards Slide 16

Funded 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

Fixed vs. Variable-rate

APR
Fixed-rate APR: cannot
change during the period of
time outlined in a credit
card agreement
Variable-rate APR: may
change depending on other
factors (such as economic
conditions)
Would you prefer a fixed or
variable rate credit card?
Why?

2.6.3.G1
Interest 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
APR for Cash
Advances
Penalty APR and
When it Applies

15.99%

This APR will vary with the market based on the Prime Rate
21.99%
This APR will vary with the market based on the Prime Rate

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; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APRs 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
Minimum Interest
Charge
For Credit Card Tips
from the Federal
Reserve Board

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.

Set-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

If you are charged interest, the charge will be no less than $1.50.
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

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

Take Charge Today August 2013 Understanding Credit Cards Slide 17

Funded 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

2.6.3.G1
Interest Rates and Interest Charges

APR for Balance

Transfers
& Cash Advances
Balance transfer: act of
transferring debt from one
credit card to another
Cash advance withdrawing cash from an
ATM using a credit card
Fees may apply (even if
the APR is 0%)

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
APR for Cash
Advances
Penalty APR and
When it Applies

15.99%

This APR will vary with the market based on the Prime Rate
21.99%
This APR will vary with the market based on the Prime Rate

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; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APRs 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
Minimum Interest
Charge
For Credit Card Tips
from the Federal
Reserve Board

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.

Set-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

If you are charged interest, the charge will be no less than $1.50.
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

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

Take Charge Today August 2013 Understanding Credit Cards Slide 18

Funded 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

2.6.3.G1
Interest Rates and Interest Charges

Penalty APR & When it

Applies
Penalty APR: interest rate
charged on new transactions if the
penalty terms in the contract are
triggered
What could trigger a Penalty APR?
1.
2.
3.
4.

Make a late payment

Go over your credit limit
Make a payment that is returned
Do any of the above on another
account that you have with them.

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
APR for Cash
Advances
Penalty APR and
When it Applies

15.99%

This APR will vary with the market based on the Prime Rate
21.99%
This APR will vary with the market based on the Prime Rate

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; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APRs 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
Minimum Interest
Charge
For Credit Card Tips
from the Federal
Reserve Board

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.

Set-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

If you are charged interest, the charge will be no less than $1.50.
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

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

Take Charge Today August 2013 Understanding Credit Cards Slide 19

Funded 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

2.6.3.G1
Interest Rates and Interest Charges

How To Avoid Paying

Interest on Purchases
Pay your bill in full by the
due date
Minimum Interest Charge

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
APR for Cash
Advances
Penalty APR and
When it Applies

15.99%

This APR will vary with the market based on the Prime Rate
21.99%
This APR will vary with the market based on the Prime Rate

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; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APRs 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
Minimum Interest
Charge
For Credit Card Tips
from the Federal
Reserve Board

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.

Set-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

If you are charged interest, the charge will be no less than $1.50.
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

Fees

Typically $0.50 - $2 per

month

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
Take Charge Today August 2013 Understanding Credit Cards Slide 20
Funded 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

2.6.3.G1
Interest Rates and Interest Charges

Explore the Federal

Reserve Board website
www.federalreserve.gov/cr
editcard

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
APR for Cash
Advances
Penalty APR and
When it Applies

15.99%

This APR will vary with the market based on the Prime Rate
21.99%
This APR will vary with the market based on the Prime Rate

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; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APRs 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
Minimum Interest
Charge
For Credit Card Tips
from the Federal
Reserve Board

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.

Set-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

If you are charged interest, the charge will be no less than $1.50.
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

Fees

Identify three resources on

this site that could help you
in the future when it comes to
managing your credit cards

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

Take Charge Today August 2013 Understanding Credit Cards Slide 21

Funded 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

Set-up and Maintenance

Fees
Annual fee: yearly fee that
may be charged for having
a credit card
Set-up fee: fee for opening
the account
Participation fee: monthly
fee for having the credit
card
Additional card fee: fee to
have a second person on
the account
Why would a consumer
choose a credit card with
annual
fee?miles,
Benefits, an
such
as airline
the card offers are of greater
value to them

2.6.3.G1
Interest 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
APR for Cash
Advances
Penalty APR and
When it Applies

15.99%

This APR will vary with the market based on the Prime Rate
21.99%
This APR will vary with the market based on the Prime Rate

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; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APRs 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
Minimum Interest
Charge
For Credit Card Tips
from the Federal
Reserve Board

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.

Set-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

If you are charged interest, the charge will be no less than $1.50.
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

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

Take Charge Today August 2013 Understanding Credit Cards Slide 22

Funded 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

2.6.3.G1
Interest Rates and Interest Charges

Transaction Fees
Balance transfer fees
Cash advance fees
Other

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
APR for Cash
Advances
Penalty APR and
When it Applies

15.99%

This APR will vary with the market based on the Prime Rate
21.99%
This APR will vary with the market based on the Prime Rate

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; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APRs 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
Minimum Interest
Charge
For Credit Card Tips
from the Federal
Reserve Board

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.

Set-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

If you are charged interest, the charge will be no less than $1.50.
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

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
Take Charge Today August 2013 Understanding Credit Cards Slide 23
Funded 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

2.6.3.G1
Interest Rates and Interest Charges

Penalty Fees
Penalty fees in addition to
Penalty APR
Late-payment fee: charged
when a cardholder does not
make the minimum monthly
payment by the due date

Over-the-limit fee: charged

if the account balance goes
over the set credit limit

Returned payment fee:

applies if the cardholder does
not have enough money to
cover a payment.

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
APR for Cash
Advances
Penalty APR and
When it Applies

15.99%

This APR will vary with the market based on the Prime Rate
21.99%
This APR will vary with the market based on the Prime Rate

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; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APRs 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
Minimum Interest
Charge
For Credit Card Tips
from the Federal
Reserve Board

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.

Set-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

If you are charged interest, the charge will be no less than $1.50.
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

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

Take Charge Today August 2013 Understanding Credit Cards Slide 24

Funded 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

2.6.3.G1
Interest Rates and Interest Charges

How We Calculate Your

Balance
Credit card companies use
one of several methods to
calculate an outstanding
credit card balance

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
APR for Cash
Advances
Penalty APR and
When it Applies

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

21.99%
This APR will vary with the market based on the Prime Rate

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; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APRs 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
Minimum Interest
Charge
For Credit Card Tips
from the Federal
Reserve Board

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.

Set-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

If you are charged interest, the charge will be no less than $1.50.
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

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
Take Charge Today August 2013 Understanding Credit Cards Slide 25
Funded 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

2.6.3.G1
Interest Rates and Interest Charges

Loss of Introductory APR

If the card has an
introductory rate, this area
will list how the lower
introductory rate can be lost

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
APR for Cash
Advances
Penalty APR and
When it Applies

15.99%

This APR will vary with the market based on the Prime Rate
21.99%
This APR will vary with the market based on the Prime Rate

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; or
4.
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APRs 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
Minimum Interest
Charge
For Credit Card Tips
from the Federal
Reserve Board

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.

Set-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

If you are charged interest, the charge will be no less than $1.50.
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

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
Take Charge Today August 2013 Understanding Credit Cards Slide 26
Funded 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

2.6.3.G1

Credit Card Chaos

Two credit
card terms
will be
provided

Identify
which term
is true on
your credit
card offer

Move to
the correct
side of the
room
indicated
by the
arrow

Take Charge Today August 2013 Understanding Credit Cards Slide 27

Funded 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

2.6.3.G1

Credit Card Chaos

Does your credit card offer have a:

Fixed-rate
APR for
Purchases

Card 3 15.99%

OR

Variable-rate
APR for
Purchases

Card 1 14.99%
Card 2 14.99%

Take Charge Today August 2013 Understanding Credit Cards Slide 28

Funded 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

2.6.3.G1

Credit Card Chaos

Does your credit card offer have an Introductory
Rate?

No
Introductory
Rate

Card 2

OR

Introductory
Rate

Card 1 12.99-14.99% for one

year
Card 3 11.99% for one year

Take Charge Today August 2013 Understanding Credit Cards Slide 29

Funded 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

2.6.3.G1

Credit Card Chaos

Does your credit card offer have an:

APR for
Purchases
greater than or
equal to 15%

OR

APR for
Purchases
less than 15%

Card 3
Take Charge Today August 2013 Understanding Credit Cards Slide 30
Funded 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

Card 1
Card 2

2.6.3.G1

Credit Card Chaos

Does your credit card offer have a Minimum
Interest Charge?

Minimum
Interest
Charge

OR

No Minimum
Interest
Charge

Card 1 - $1.50
Card 3 - $2.00
Take Charge Today August 2013 Understanding Credit Cards Slide 31
Funded 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

Card 2

2.6.3.G1

Credit Card Chaos

Does your credit card offer have an Annual Fee?

Annual Fee

OR

No Annual
Fee

Card 1 - $20
Card 3 - $15
Take Charge Today August 2013 Understanding Credit Cards Slide 32
Funded 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

Card 2

2.6.3.G1

Credit Card Chaos

Does your credit card offer have a Balance
Transfer Fee?

No Balance
Transfer
Fee

Card 3

OR

Balance
Transfer
Fee

Card 1 - $5 or 3%
Card 2 - $25 or 5%

Take Charge Today August 2013 Understanding Credit Cards Slide 33

Funded 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

2.6.3.G1

Credit Card Chaos

Does your credit card offer have a Late Payment
Fee?

Late
Payment
Fee

OR

Card 1 - $29 if balance less than

$1000 or $35 for balances greater
than $1000
Card 2 - $30
Card 3 -$35

No Late
Payment
Fee

Take Charge Today August 2013 Understanding Credit Cards Slide 34

Funded 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

2.6.3.G1

How Do I Obtain a Credit Card?

Shop around
Compare credit card
offers and determine
which card best fits
your needs

Complete a credit application

Approval?
A form requesting
information about a
persons ability to repay

Credit card companies send pre-approved

credit card applications in the mail when
the individual has passed the initial credit
check

Applicant may or may

not be approved
(depends on
creditworthiness)
If approved, review the
final credit terms closely

Take Charge Today August 2013 Understanding Credit Cards Slide 35

Funded 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

2.6.3.G1

Obtaining a Credit Card

You must be
21

Or, have a cosigner

Or, have
proof of
sufficient
income to
make
payments

If a credit card is
not managed
responsibly, what
impact does that
have on a cosigner?

Take Charge Today August 2013 Understanding Credit Cards Slide 36

Funded 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

2.6.3.G1

What is a Credit Card Statement?

It is important to
review each
monthly credit
card statement
closely!
Andrews Credit Card Statement
Please help Andrew interpret his credit card statement.

Take Charge Today August 2013 Understanding Credit Cards Slide 37

Funded 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

2.6.3.G1
Andrews Credit Card Statement
Summary of Account Activity

Summary of Account
Activity
Overview of credit card

Previous Balance
Payments
Purchases
Balance Transfers
Cash Advances
Past Due Amount
Fees Charged
Interest Charged
New Balance

Credit Limit
Available credit
Statement closing date
Days in billing cycle

535.07
-450.00
+517.12
+785.00
+318.00
+0.00
+69.45
+11.36
$1,786.00

$2,000.00
$214.00
3/22/2012
30

Payment Information

3
4

New Balance
$1786.00
Minimum Payment Due
$53.00
Payment Due Date
4/20/12
Late 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 APRs 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

If you make no additional

charges using this card
and each month you
pay
Only the minimum
payment
$62

You will pay off the balance

shown on this statement in
about

And you will end up

paying an estimated total
of

Summary of Account Activity

8 years

$2,785

3 years

$2,232

Previous Balance
535.07
Notice of Changes to Your
Important Changes to Your Account Terms
6
Interest Rates
Payments
The following is a summary of changes that are being made -450.00
to your account terms. For more
You have triggered the Penalty APR of 28.99%.
detailed
information,
please
refer
to
the
booklet
enclosed
with
this
statement.
These
changes
will
5 impact your account as follows:
This change will impact your account as Purchases
+517.12
follows:
Transactions made on or after 4/9/12: As of 5/10/12, any changes to APRs described below will
Transactions made on or after 4/9/12: As of
Balance
Transfers
+785.00
apply
to these transactions.
5/10/12, the Penalty APR will apply to these
Transactions made before 4/9/12: Current APRs will continue to apply to these transactions.
transactions. We may keep the APR at thisCash Advances
If you are already being charged a higher Penalty for purchases:
In this case, any changes to APRs
+318.00
level indefinitely.
described below will not go into affect
at this Terms,
time. These
Revised
as ofchanges will go into effect when the
Transactions made before 4/9/12: CurrentPast
rates
Penalty
APR
no
longer
applies
to
your
account.
Due Amount
5/10/12
+0.00
will continue to apply to these transactions. If
APR for
16.99%
you become more than 60 days late on your
purchases
Fees
Charged
+69.45
Transactions
account, the Penalty APR will apply to those
7
Trans
transactions
well.
Description of Transaction or Credit
ReferenceasNumber
Post Date
+11.36 Amount
Date Interest Charged
Store #1
$517.12
XXXX1
2/22
2/23
New
BalancePayment
$1,786.00
$450.00 XXXX2
2/25
2/25
Cash Advance
$318.00
XXXX3
2/26
2/26

Balance Transfer
$785.00
XXXX4
2/27
3/1
Credit Limit
$2,000.00
Fees
Late Fee
$35.00
XXXX5
2/23
2/23
Available
credit
$214.00
Balance Transfer Fee
$23.55
XXXX6
2/27
2/27
Cash Advance
Fee
$10.90
XXXX7
2/28
2/28
8
Statement
closing
date
3/22/2012
Total Fees for this Period
$69.45

Interest Charged

How much did Andrew charge

in new purchases during this
credit card billing cycle?
$517.12

Interest Charge on Purchases

Days
in billing
cycle
Interest Charge on Cash Advances

30

$6.57
$4.79
$11.36

Total Interest for this Period

2012 Totals Year-to-Date

Total fees charged in 2012
Total interest charged in 2012

$90.14
$18.74

Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Type of Balance
Purchases
Cash Advances
Balance Transfers

Annual Percentage Rate (APR)

14.99%
21.99%
0.00%

10

Balance Subject to Interest Rate

$533.32
$265.00
$575.67

Take Charge Today August 2013 Understanding Credit Cards Slide 38

Funded 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

Interest Charge
$6.57
$4.79
$0.00

2.6.3.G1
Andrews Credit Card Statement
Summary of Account Activity

Payment Information
Total new balance
Minimum payment amount
Date payment is due

Previous Balance
Payments
Purchases
Balance Transfers
Cash Advances
Past Due Amount
Fees Charged
Interest Charged
New Balance

Credit Limit
Available credit
Statement closing date
Days in billing cycle

535.07
-450.00
+517.12
+785.00
+318.00
+0.00
+69.45
+11.36
$1,786.00

$2,000.00
$214.00
3/22/2012
30

3
4

If you make no additional

charges using this card
and each month you
pay
Only the minimum
payment
$62

You will pay off the balance

shown on this statement in
about

And you will end up

paying an estimated total
of

Payment Information

8 years
$2,785
New Balance
$1,786.00
3 years
$2,232
Minimum Payment Due
$53.00
Notice of Changes to Your
Important Changes to Your Account Terms
Payment
Due Date
4/20/12
6
Interest Rates
The following is a summary of changes that are being made to your account terms. For more
You have
triggered the Penalty
APR of 28.99%.If we detailed
Late
Payment
Warning:
do
not
receive
your
minimum
payment
by
the
information,
please
refer
to
the
booklet
enclosed
with
this
statement.
These
changes
will
5 impact your account as follows:
This change will impact your account as
date
to pay
a or$35
feeAsand
your
APRs
may
bebelow will
follows:listed above, you may have
Transactions
made on
after 4/9/12:
of 5/10/12,
any changes
to APRs
described
Transactions made on or after 4/9/12: As of
apply to these transactions.
increased
up
to
the
Penalty
rate
of
28.99%
5/10/12, the Penalty APR will apply to these
Transactions made before 4/9/12: Current APRs will continue to apply to these transactions.
transactions. We may keep the APR at this
If you
are already
being
charged
a higher
Penalty for purchases:
In this case,
any changes to APRs
Minimum
you
make
only
the
minimum
payment
each
level indefinitely. Payment Warning: If
described below will not go into affect
at this Terms,
time. These
Revised
as ofchanges will go into effect when the
Transactions
made
before
4/9/12:
Current
rates
Penalty and
APR no it
longer
applies
to your
account.
5/10/12
period,
you will pay more in interest
will
take
you
longer
to pay off your
will continue to apply to these transactions. If
APR for
16.99%
you become more
60 days late on your
balance.
Forthan
example
Transactionspurchases

account, the Penalty APR will apply to those

Trans
transactions
well.
ReferenceasNumber

Date
If you make
no
XXXX1
2/22
XXXX2 additional charges
2/25
XXXX3
2/26
using this card
and
XXXX4
2/27

each month you

pay2/23
2/27
2/28
the minimum

payment

XXXX5
XXXX6
XXXX7 Only

What is Andrews minimum

payment due for this billing
cycle?
$53.00

Payment Information

New Balance
$1786.00
Minimum Payment Due
$53.00
Payment Due Date
4/20/12
Late 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 APRs 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

$62

Post Date

Description of Transaction or Credit

Store #1
2/23
You will pay
off the
Payment
2/25
shown
Advanceon
2/26balance Cash
Balance Transfer
3/1 this statement
in

Fees

2/23
2/27
2/28

about
Late Fee

Amount
$517.12
$450.00 $318.00
$785.00

And you will end up

paying an
estimated total of

Balance Transfer Fee

Cash Advance Fee
Total Fees for this Period

8 years

$35.00
$23.55
$10.90
$69.45

$2,785

Interest Charged

Interest Charge on Purchases

$2,232
3 years
Interest Charge on Cash Advances
(Savings=$553)
Total Interest for this Period

2012 Totals Year-to-Date

Total fees charged in 2012
Total interest charged in 2012

$90.14
$18.74

$6.57
$4.79
$11.36

Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Type of Balance
Purchases
Cash Advances
Balance Transfers

Annual Percentage Rate (APR)

14.99%
21.99%
0.00%

10

Balance Subject to Interest Rate

$533.32
$265.00
$575.67

Take Charge Today August 2013 Understanding Credit Cards Slide 39

Funded 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

Interest Charge
$6.57
$4.79
$0.00

2.6.3.G1

Late Payment Warning

What will happen if a
payment is lateusually
additional fees and a higher
interest rate
Minimum Payment
Warning
Estimate of how long it can
take to pay off balance if only
minimum payment is made
How long will it take Andrew to
pay off the balance of his credit
card if he only pays the
minimum payment?
8 years

Andrews Credit Card Statement

Summary of Account Activity
Previous Balance
Payments
Purchases
Balance Transfers
Cash Advances
Past Due Amount
Fees Charged
Interest Charged
New Balance

Credit Limit
Available credit
Statement closing date
Days in billing cycle

1
New Balance

535.07
-450.00
+517.12
+785.00
+318.00
+0.00
+69.45
+11.36
$1,786.00

$2,000.00
$214.00
3/22/2012
30

Payment Information

New Balance
$1786.00
Minimum Payment Due
$53.00
Payment Due Date
4/20/12
Late 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 APRs 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

3
Payment
Information

$1,786.00
4 If you make no additional
Minimum Payment Due
$53.00
You will pay off the balance
And you will end up
charges using this card

shown
on
this
statement
in
paying
an
estimated total
Payment Due Date
4/20/12
and each month you
about
of
pay
Late Payment Warning: If we do
not receive your minimum payment by the
Only the minimum
8 years
$2,785
payment
date listed above, you may have to
pay a $35 fee and
your APRs may
be
$62
3 years
$2,232
increased up to the Penalty rate of 28.99%
Notice of Changes to Your
Important
to Your
Account
Terms payment each
Minimum
If youChanges
make only
the
minimum
6
Interest
Rates Payment Warning:
The following is a summary of changes that are being made to your account terms. For more
You period,
have triggered
the Penalty
APR
of 28.99%.
detailed
information,
please
refer
to
the
booklet
enclosed
with
this
statement.
These
changes
will
you
will
pay
more
in
interest
and
it
will
take
you
longer
to
pay
off
your
5 impact your account as follows:
This change will impact your account as
follows:
balance. For example
Transactions made on or after 4/9/12: As of 5/10/12, any changes to APRs described below will
Transactions made on or after 4/9/12: As of
apply to these transactions.
5/10/12, the Penalty APR will apply to these
Transactions made before 4/9/12: Current APRs will continue to apply to these transactions.
transactions. We may keep the APR at this
If you are already being charged a higher Penalty for purchases: In this case, any changes to APRs
level indefinitely.
described below will not go into affect
at this Terms,
time. These
Revised
as ofchanges will go into effect when the
Transactions made before 4/9/12: Current rates
Penalty APR no longer applies to your account.
5/10/12
will continue to apply to these transactions. If
APR for
16.99%
you become more than 60 days late on your
Transactionspurchases
account, the Penalty APR will apply to those
Trans
transactions
as
well.
Description of Transaction or Credit
Amount
Reference Number
Post Date

XXXX1
XXXX2
XXXX3
XXXX4
XXXX5
XXXX6
XXXX7

If you make no
additional charges
using this card and
each month
you
Date
2/22
2/23
pay
2/25
2/25
Only the
minimum
2/26
2/26
2/27
3/1
payment
$62
2/23
2/23
2/27
2/28

2/27
2/28

You will pay off the

balance shown on
this statement in7
about
Store #1
Payment
Cash Advance
Balance Transfer

And you will end up

paying an
estimated total of

8 years

$2,785

Fees

$2,232

3 years

Late Fee
Balance Transfer Fee
Cash Advance Fee
Total Fees for this Period

$517.12
$450.00 $318.00
$785.00
$35.00
$23.55
$10.90
$69.45

Interest Charged

Interest Charge on Purchases

Interest Charge on Cash Advances
Total Interest for this Period

$6.57
$4.79
$11.36

2012 Totals Year-to-Date

Total fees charged in 2012
Total interest charged in 2012

$90.14
$18.74

Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Type of Balance
Purchases
Cash Advances
Balance Transfers

Annual Percentage Rate (APR)

14.99%
21.99%
0.00%

10

Balance Subject to Interest Rate

$533.32
$265.00
$575.67

Take Charge Today August 2013 Understanding Credit Cards Slide 40

Funded 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

Interest Charge
$6.57
$4.79
$0.00

2.6.3.G1
Andrews Credit Card Statement
Summary of Account Activity

Notice of Changes to Your

Interest Rates
Notifies card holder if rates
are changing (typically a
result of the Penalty APR
being triggered)

Previous Balance
Payments
Purchases
Balance Transfers
Cash Advances
Past Due Amount
Fees Charged
Interest Charged
New Balance

Credit Limit
Available credit
Statement closing date
Days in billing cycle

535.07
-450.00
+517.12
+785.00
+318.00
+0.00
+69.45
+11.36
$1,786.00

$2,000.00
$214.00
3/22/2012
30

Payment Information

New Balance
$1786.00
Minimum Payment Due
$53.00
Payment Due Date
4/20/12
Late 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 APRs 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

3
1
4 to Your Interest Rates
Notice of Changes
If you make no additional

You will pay off the balance

And you will end up

8 years

$2,785

using this card

charges
shown
on this
statement in will
paying
an estimated
total
You have triggered the Penalty
APR
28.99%.
This
change
impact
your
and eachof
month
you
about
of
pay
account as follows:
Only the minimum
payment

$62 As of 5/10/12,
3 years
$2,232
Transactions made on or after 4/9/12:
the Penalty APR
will
Notice
of to
Changes
to transactions.
Your
apply
these
We
may
keep
the
APR
at
this
level
indefinitely.
Important Changes to Your Account Terms

Interest Rates

The following is a summary of changes that are being made to your account terms. For more
You have triggered the Penalty APR of 28.99%.
detailed information, please refer to the booklet enclosed with this statement. These changes will
This change will impact your account as
impact your account as follows:
follows:
Transactions made on or after 4/9/12: As of 5/10/12, any changes to APRs described below will
Transactions made on or after 4/9/12: As of
apply to these transactions.
5/10/12, the Penalty APR will apply to these
Transactions made before 4/9/12: Current APRs will continue to apply to these transactions.
transactions. We may keep the APR at this
If you are already being charged a higher Penalty for purchases: In this case, any changes to APRs
level indefinitely.
described below will not go into affect
at this Terms,
time. These
Revised
as ofchanges will go into effect when the
Transactions made before 4/9/12: Current rates
Penalty APR no longer applies to your account.
5/10/12
will continue to apply to these transactions. If
APR for
16.99%
you become more than 60 days late on your
Transactionspurchases
account, the Penalty APR will apply to those
Trans
transactions
as
well.
Description of Transaction or Credit
Amount
Reference Number
Post Date

5 4/9/12: Current rates will continue to apply to

Transactions made before
these transactions. If you become more than 60 days late on your account,
the Penalty APR will apply to those transactions as well.
7

XXXX1
XXXX2
XXXX3
XXXX4

Date
2/22
2/25
2/26
2/27

2/23
2/25
2/26
3/1

Store #1
Payment
Cash Advance
Balance Transfer

XXXX5
XXXX6
XXXX7

2/23
2/27
2/28

2/23
2/27
2/28

Late Fee
Balance Transfer Fee
Cash Advance Fee
Total Fees for this Period

$517.12
$450.00 $318.00
$785.00

Fees

Has Andrew triggered

the Penalty APR?
Yes, he will pay 28.99% on all
transactions made after 4/9/12

$35.00
$23.55
$10.90
$69.45

Interest Charged
Interest Charge on Purchases
Interest Charge on Cash Advances
Total Interest for this Period

$6.57
$4.79
$11.36

2012 Totals Year-to-Date

Total fees charged in 2012
Total interest charged in 2012

$90.14
$18.74

Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Type of Balance
Purchases
Cash Advances
Balance Transfers

Annual Percentage Rate (APR)

14.99%
21.99%
0.00%

10

Balance Subject to Interest Rate

$533.32
$265.00
$575.67

Take Charge Today August 2013 Understanding Credit Cards Slide 41

Funded 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

Interest Charge
$6.57
$4.79
$0.00

2.6.3.G1
Andrews Credit Card Statement
Summary of Account Activity

Important Changes to Your

Account Terms
Must be notified of any
significant changes
Any changes can only apply
to new charges
Account can be closed
before the changes go into
effect
Other than implementation of
the Penalty APR, will there be
any other changes to
Andrews account terms?
Yes, his APR for Purchases is
increasing to 16.99%

Previous Balance
Payments
Purchases
Balance Transfers
Cash Advances
Past Due Amount
Fees Charged
Interest Charged
New Balance

Credit Limit
Available credit
Statement closing date
Days in billing cycle

535.07
-450.00
+517.12
+785.00
+318.00
+0.00
+69.45
+11.36
$1,786.00

$2,000.00
$214.00
3/22/2012
30

Notice of Changes to Your

Interest Rates

Payment Information

3
4

New Balance
$1786.00
Minimum Payment Due
$53.00
Payment Due Date
4/20/12
Late 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 APRs 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

If you make no additional

charges using this card
and each month you
pay
Only the minimum
payment
$62

You will pay off the balance

shown on this statement in
about

And you will end up

paying an estimated total
of

8 years

$2,785

3 years

$2,232

Important Changes to Your Account Terms

Important Changes
to Your Account Terms
5

The following is a summary of changes that are being made to your account terms. For more
You have triggered the Penalty APR of 28.99%.
detailed information, please refer to the booklet enclosed with this statement. These changes will
This change will impact your account as
impact your account as follows:
follows:
Transactions made on or after 4/9/12: As of 5/10/12, any changes to APRs described below will
Transactions made on or after 4/9/12: As of
apply to these transactions.
5/10/12, the Penalty APR will apply to these
Transactions made before 4/9/12: Current APRs will continue to apply to these transactions.
transactions. We may keep the APR at this
If you are already being charged a higher Penalty for purchases: In this case, any changes to APRs
level indefinitely.
described below will not go into affect
at this Terms,
time. These
Revised
as ofchanges will go into effect when the
Transactions made before 4/9/12: Current rates
Penalty APR no longer applies to your account.
5/10/12
will continue to apply to these transactions. If
APR for
16.99%
you become more than 60 days late on your
Transactionspurchases
account, the Penalty APR will apply to those
Trans
transactions
as
well.
Description of Transaction or Credit
Amount
Reference Number
Post Date

The 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, any changes to APRs
described below will apply to these transactions.
7
Date before 4/9/12: Current APRs will continue to apply to these
Transactions made
Store #1
$517.12
XXXX1
2/22
2/23
transactions. 2/25
Payment
$450.00 XXXX2
2/25
Advance
$318.00
XXXX3
2/26
If you are already
being2/26
charged Cash
a higher
Balance
Transfer Penalty for purchases: In this case,
$785.00
XXXX4
2/27
3/1
Fees
any changes to APRs described below
will not go into affect at this time.
Late Fee
$35.00
XXXX5
2/23
2/23
These changes2/27
will go into
when
the
Transfer
Fee Penalty APR no longer applies to
$23.55
XXXX6
2/27 effectBalance
Cash Advance Fee
$10.90
XXXX7
2/28
2/28
8
your
account.
Total Fees for this Period
$69.45

Interest
Charged
Revised
Terms,
as of
5/10/12
Interest Charge on Purchases
Interest Charge on Cash Advances
Total Interest for this Period

$6.57
$4.79
$11.36

APR for purchases

16.99%
2012 Totals Year-to-Date

Total fees charged in 2012

Total interest charged in 2012

$90.14
$18.74

Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Type of Balance
Purchases
Cash Advances
Balance Transfers

Annual Percentage Rate (APR)

14.99%
21.99%
0.00%

10

Balance Subject to Interest Rate

$533.32
$265.00
$575.67

Take Charge Today August 2013 Understanding Credit Cards Slide 42

Funded 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

Interest Charge
$6.57
$4.79
$0.00

2.6.3.G1
Andrews Credit Card Statement

Transactions
List of all transactions since
the last statement
Should be reviewed for
errors
Fees and Interest Charged
Fees and interest charges
must be listed separately
Does Andrew owe a late fee?
Yes, he owes a $35.00 late fee

Summary of Account Activity

Previous Balance
Payments
Purchases
Balance Transfers
Cash Advances
Past Due Amount
Fees Charged
Interest Charged
New Balance

Credit Limit
Available credit
Statement closing date
Days in billing cycle

535.07
-450.00
+517.12
+785.00
+318.00
+0.00
+69.45
+11.36
$1,786.00

$2,000.00
$214.00
3/22/2012
30

Payment Information

3
4

New Balance
$1786.00
Minimum Payment Due
$53.00
Payment Due Date
4/20/12
Late 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 APRs 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

If you make no additional

charges using this card
and each month you
pay
Only the minimum
payment
$62

You will pay off the balance

shown on this statement in
about

And you will end up

paying an estimated total
of

Transactions
$2,785
Reference
Trans
Post
Description of 8 years
Amount
3 years
$2,232
Number
Date
Date
Transaction or Credit
Notice of Changes
to Your 2/23
XXXX1
2/22
Store Changes
#1
$535.07
Important
to Your Account Terms
Interest
Rates
The
following
is
a
summary
of
changes
that
are
being
made
to
your
account
terms.
For more - 6
XXXX2
2/25
2/26
Payment
$450.00
You have triggered the Penalty APR of 28.99%.
detailed
information,
please
refer
to
the
booklet
enclosed
with
this
statement.
These
changes will
5 impactCash
This change will impact your
account as 2/26
your account
as follows:
XXXX3
2/26
Advance
$318.00
follows:
Transactions made on or after 4/9/12: As of 5/10/12, any changes to APRs described below will
Transactions made on or3/15
after 4/9/12: As of
XXXX4
3/17
Transfer
$785.00
applyBalance
to these transactions.
5/10/12, the Penalty APR will apply to these
Transactions made before 4/9/12: Current APRs will continue to apply to these transactions.
Fees
transactions. We may keep the APR at this
If you are already
being charged a higher Penalty for purchases: In this case, any changes to APRs
level indefinitely.
described below will not go into affect
at this Terms,
time. These
Revised
as ofchanges will go into effect when the
XXXX5
2/23
Late
Fee
$35.00
Transactions made before
4/9/12: Current 2/23
rates
Penalty APR no longer applies to your account.
5/10/12
will continue to apply to these transactions. If
APR
for
16.99%
XXXX6
2/27
2/27
Balance
Transfer
Fee
$23.55
you become more than 60 days late on your
Transactionspurchases
account, the Penalty APR will apply to those
7
XXXX7
2/28
2/28
Cash
Advance
Fee
$10.90
Trans
transactions
well.
Description of Transaction or Credit
Amount
ReferenceasNumber
Post Date
Date
XXXX1
2/22
2/23
Total
Fees for this
$69.45
Store #1
$517.12
Payment
$450.00 XXXX2
2/25
2/25
Period
Cash Advance
$318.00
XXXX3
2/26
2/26
Interest
Charged
Balance
Transfer
$785.00
XXXX4
2/27
3/1

InterestFees
Charge on
$6.59
Late Fee
$35.00
XXXX5
2/23
2/23
Purchases
Balance Transfer Fee
$23.55
XXXX6
2/27
2/27
Cash Advance
Fee
XXXX7
2/28
2/28
Interest
Charge
on Cash
8
$4.79$10.90
Total Fees for this Period
$69.45

Advances
Interest Charged
Totals
Year-to-Date
Interest
Charge
on Purchases


2012Total
Interest
for this
$11.36$6.57
Interest Charge on Cash Advances
$4.79

Total
fees
charged
in
2012
$90.14
Period
Total Interest for this Period
$11.36

Total interest charged in 2012

$18.74
2012 Totals Year-to-Date

Total fees charged in 2012

Total interest charged in 2012

$90.14
$18.74

Interest Charge Calculation *Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Type of Balance
Purchases
Cash Advances
Balance Transfers

Annual Percentage Rate (APR)

14.99%
21.99%
0.00%

10

Balance Subject to Interest Rate

$533.32
$265.00
$575.67

Take Charge Today August 2013 Understanding Credit Cards Slide 43

Funded 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

Interest Charge
$6.57
$4.79
$0.00

2.6.3.G1

Year-to-Date Totals
Total amount paid in fees and
interest charges for the
current year
What is the total amount of
interest Andrew has paid in
the year 2012?
$18.74
Interest Charge
Calculation
Summary of the different
types of transactions
Why is it important to
understand how to read a
credit card statement?

Andrews
Credit Card Statement
Transactions
Payment
Post New Balance Description
of Information 2
Amount $1786.00
Payment Due
$53.00
Number
Date
Date Minimum Transaction
or Credit
Payment Due Date
4/20/12
XXXX1
2/22
2/23 Late Payment
StoreWarning:
#1 If we do not receive your minimum payment by the date
$535.07
listed above,
you may have to pay a $35 fee and your APRs may be increased up to the Penalty rate of
XXXX2
2/25
2/253 28.99%Payment
$450.00 1
Payment Warning: If you make only the minimum payment each period, you will pay
XXXX3
2/26
2/264 Minimum
Advance
more inCash
interest and
it will take you longer to pay off your balance. For example$318.00
If you
make no additional
XXXX4
2/27
3/11
Balance
TransferYou will pay off the balance
$785.00
And you will
end up
charges using this card
shown on this statement in
paying an estimated total
Fees
and each
month you
about
of
pay
XXXX5
2/23
2/23
Late
$35.00
Only theFee
minimum
8 years
$2,785
payment
XXXX6
2/27
2/27
Balance
Transfer
Fee
$23.55
$62
3 years
$2,232
XXXX7
2/28
2/28
Cash Advance Fee
$10.90
Notice of Changes to Your
Important
Changes
to
Your
Account Terms
Interest Rates

Total
Fees
for
this
$69.45
6
The following is a summary of changes that are being made to your account terms. For more
You have triggered the Penalty APR of 28.99%.
detailed
information,
please
refer
to
the
booklet
enclosed
with
this
statement.
These
changes
will
Period
5 impact your account as follows:
This change will impact your account as
follows:
Interest
Transactions
made onCharged
or after 4/9/12: As of 5/10/12, any changes to APRs described below will
Transactions made on or after 4/9/12: As of
apply to these transactions.
5/10/12, the Penalty APR willapply to these
Interest
Charge
onAPRs will continue to apply to these transactions.
$6.57
Transactions
made before
4/9/12: Current
transactions. We may keep the APR at this
If you are already being charged a higher Penalty for purchases: In this case, any changes to APRs
Purchases
level indefinitely.
described below will not go into affect
at this Terms,
time. These
Revised
as ofchanges will go into effect when the
made before 4/9/12: Current rates
Penalty APR no longer applies to your account.
Transactions
transactions. If
Interest Charge
on 5/10/12
Cash16.99%
$4.79
will continue to apply to these
APR for
you become more than 60 days late on your
purchases
Transactions
Advances
account, the Penalty APR will apply to those
7 or Credit
well.
Description
of Transaction
Amount
ReferenceasNumber
Post Date
transactions
Trans

Total
Interest
for this
$11.36
2012
Totals
Year-to-Date
Date
Store #1
$517.12
XXXX1
2/23
Period
Total2/22
fees charged
in 2012
$90.14
Payment
$450.00 XXXX2
2/25
2/25
Total2/26
interest charged
inCash
2012
$18.74
Advance
$318.00
XXXX3
2/26
Summary of Account
Activity
Reference
Trans

Previous Balance
Payments
Purchases
Balance Transfers
Cash Advances
Past Due Amount
Fees Charged
Interest Charged
New Balance

Credit Limit
Available credit
Statement closing date
Days in billing cycle

XXXX4

535.07
-450.00
+517.12
+785.00
+318.00
+0.00
+69.45
+11.36
$1,786.00

$2,000.00
$214.00
3/22/2012
30

2/27

3/1

Balance Transfer

$785.00

Fees
XXXX5
XXXX6
XXXX7

2/23
2/27
2/28

2/23
2/27
2/28

Interest Charge on Purchases

Interest Charge on Cash Advances

Interest
Charge
Calculation
Total Interest for
this Period

Late Fee
Balance Transfer Fee
Cash Advance Fee
Total Fees for this Period

$35.00
$23.55
$10.90
$69.45

Interest Charged
$6.57
$4.79
$11.36

Type of
Annual Percentage
Balance Subject to
Interest
2012 Totals Year-to-Date
9
Total
fees
charged
in
2012
$90.14
Balance
Rate (APR)
Interest Rate
Charge
Total interest charged in 2012
$18.74
Purchases
14.99%
$533.32
$6.57
Cash
Advances
$265.00
$4.79
Interest
Charge Calculation 21.99%
*Your Annual Percentage Rate (APR)
is the annual interest rate on your
account.
Type of Balance
Annual Percentage Rate (APR)
Balance Subject to Interest Rate
Interest Charge
Balance
0.00%
$575.67
$0.00
Purchases
14.99%
$533.32
$6.57
10
Cash Advances
21.99%
$265.00
$4.79
Transfers
Balance Transfers

0.00%

Take Charge Today August 2013 Understanding Credit Cards Slide 44

Funded 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

$575.67

$0.00

2.6.3.G1

Be Andrews Financial Advisor

Andrew has come to you and voiced his
concerns about having a credit card. He is
considering getting rid of his credit card.
As a financial advisor, you understand that
credit cards are financial tools that can be
used or abused.
What three pieces of advice will you give Andrew?
Take Charge Today August 2013 Understanding Credit Cards Slide 45
Funded 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

2.6.3.G1

Summary
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
credit history

If you apply for credit

and are approved, be
sure to review the
final credit terms
offered

Credit card companies

are required to
disclose the terms and
fees of a credit card

Credit card
statements outline
important information
about a credit card
and should be
checked carefully for
errors

Take Charge Today August 2013 Understanding Credit Cards Slide 46

Funded 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