CREDIT CARDS CALM 20 What is a Credit
- Slides: 6
CREDIT CARDS CALM 20
What is a Credit Card? • A credit card can be a convenient way to pay for almost anything, from a new pair of shoes to a holiday in the sun. • But it’s important to remember that a credit card is a type of loan. • When you spend on a credit card you are essentially borrowing money – and if your debts get out of hand you could end up in big trouble.
How does a Credit Card Work? • When you apply for a credit card, you apply to borrow money from the card issuer, usually a bank • The bank will set a credit limit, which is the maximum amount you can spend on the card. • The card company will send you a statement every month, detailing the transactions on the card, plus the amount owing. It should also give the minimum payment and the payment due date.
Looking at Credit Card Options • http: //itools-ioutils. fcac-acfc. gc. ca/STCV-OSVC/ccst-oscc- eng. aspx
What are some positives of Credit Cards? • On one side, there are positives: • They are convenient. • It’s safer than carrying cash. • You’re covered in an emergency. • You have a record of all your purchases. • If you pay off the balance every month, they help you build a good credit score.
What are some Credit Card Dangers? • They are too convenient. • It’s hard to remember how much you spend until you receive a bill at the end of the month. • They can damage your credit score if you don’t pay them off every month. • http: //itools-ioutils. fcac-acfc. gc. ca/CCPC-CPCC- eng. aspx • How can we avoid these dangers?
