Credit Cards Question 1 How many credit cards

Credit Cards

Question 1 • How many credit cards does the average family have: – A. 3 – B. 6 – C. 8 – D. 10 • Answer: 8

Question 2 • 144 million people have credit cards. How many do you think pay them off in full: • A. 100 million • B. 110 million • C. 80 million • D. 55

Question 3 • Credit card companies name for a person who pays off all of their bill: • A. Positive Person • B. Mr. Carlson • C. Deadbeat • D. Revolver • C. Deadbeat

Questions 4 • • • Average credit card debt for an American? A. 2000 B. 4000 C. 1000 D. 8, 000 D. 8000

Question 5 • How many days does a card company have to give before changing terms of service • A. 90 days • B. 50 days • C. 15 days • D. 1 day • C 15 days

Credit Card Terms • Annual Fee A flat, yearly charge similar to a membership fee, usually $25 to $50. • Finance Charge. The dollar amount you pay to use credit, includes interest costs and all charges associated with the transaction. • Annual Percentage Rate. The APR is the measure of the cost of credit expressed as a yearly rate. – Basically the Average of your interest rate – Fixed Rate-Stays the same – Variable Rate-Changes after a few months

Credit Card Terms • Grace Period The grace period is the number of days you have before a credit card company starts charging interest on new purchases. Not all credit cards have a grace period. • Transaction Fees A fee for a cash advance, a late payment, or going over your credit limit. Sometimes there is a monthly fee if you did not use the card.

• 1. What is a yearly charge you get from a credit card? • 2. What is an introductory rate? • 3. What is the difference between a fixed rate and variable rate for a credit card? • 4. What is an APR? • 5. How do people get their APR reduced? 2 things