List 4 advantages and 4 disadvantages of credit List 4 advantages and 4 disadvantages of credit List the 3 types of credit and provide at least 1 detail for each List the 3 types of credit and provide at least 1 detail for each List the 3 credit bureaus that you can receive a credit report from List the 3 credit bureaus that you can receive a credit report from

3.3 Analyze consumer debt management a. Credit card use and abuse

Credit can expand your purchasing power Credit can expand your purchasing power Allows you to purchase expensive items now and pay for them over time Allows you to purchase expensive items now and pay for them over time You can enjoy items like furniture or a car earlier in your life You can enjoy items like furniture or a car earlier in your life Making payments on time helps est. a good credit record Making payments on time helps est. a good credit record Helps you get loans in the future Helps you get loans in the future

Can provide emergency funds A sudden need for cash can be solved by a line of credit Pre-established amount that can be borrowed on demand with no collateral Convenience Often get better service If there is a problem with a purchase, payment can be withheld until it is resolved Receive advanced notice of sales and special offers

Deferred billing – a service available to credit card holders where purchases are not billed until much later than the standard billing time Deferred billing – a service available to credit card holders where purchases are not billed until much later than the standard billing time Merchandise purchased in Oct. might not be billed until Jan. with not payment due until Feb. Merchandise purchased in Oct. might not be billed until Jan. with not payment due until Feb. Card carriers have more leverage Card carriers have more leverage Money remains to be paid, giving consumers more power in the event of a dispute Money remains to be paid, giving consumers more power in the event of a dispute Carrying a credit card is safer than carrying large sums of cash Carrying a credit card is safer than carrying large sums of cash

Credit purchases may cost more than cash purchases Credit purchases may cost more than cash purchases Merchants (stores) must pay fees to credit card companies, usually a percentage of credit card sales Merchants (stores) must pay fees to credit card companies, usually a percentage of credit card sales This cost is often passed onto customers in the form of higher prices This cost is often passed onto customers in the form of higher prices If the bill is not paid in full, you will pay more for a certain item, because you will pay interest fees If the bill is not paid in full, you will pay more for a certain item, because you will pay interest fees

Using credit ties up future income Using credit ties up future income You are committed to making payments You are committed to making payments Can put a strain on your budget Can put a strain on your budget Can lead to overspending Can lead to overspending No cash leaves your bank automatically, so you may not realize how much you are spending No cash leaves your bank automatically, so you may not realize how much you are spending Using credit too much can result in debts so high that you can never pay them off Using credit too much can result in debts so high that you can never pay them off May even lead to bankruptcy May even lead to bankruptcy

Different types of credit are designed to meet certain needs of consumers Different types of credit are designed to meet certain needs of consumers Open-end credit Open-end credit Closed-end credit Closed-end credit Service credit Service credit

Open-end credit is where a borrower can use credit up to a stated limit Open-end credit is where a borrower can use credit up to a stated limit as payments are made, the limit allows for more use of the card as payments are made, the limit allows for more use of the card Borrower usually has a choice of paying the full balance within days or paying a minimum balance over time Borrower usually has a choice of paying the full balance within days or paying a minimum balance over time Can be used again and again as long as the balance owed does not exceed the credit limit Can be used again and again as long as the balance owed does not exceed the credit limit

Closed-end credit is a loan for a specific amount that must be repaid in full, including all finance charges, by a stated due date Closed-end credit is a loan for a specific amount that must be repaid in full, including all finance charges, by a stated due date Often called installment credit Often called installment credit Do not allow continuous borrowing or varying payment amounts Do not allow continuous borrowing or varying payment amounts The loan is for a specific amount and payments are fixed each month The loan is for a specific amount and payments are fixed each month Used for cars, furniture, or major appliances Used for cars, furniture, or major appliances

Service credit involves providing a service for which you will pay for later Service credit involves providing a service for which you will pay for later Phone bills and utility services are typically provided for a month in advance, then you are billed Phone bills and utility services are typically provided for a month in advance, then you are billed Doctors, lawyers, hospitals, repair shops all provide service credit Doctors, lawyers, hospitals, repair shops all provide service credit Some of those creditors do not impose finance charges on unpaid account balances, but they do expect regular payments until the bill has been paid Some of those creditors do not impose finance charges on unpaid account balances, but they do expect regular payments until the bill has been paid

Every person who uses credit has a credit history on file at a credit bureau Every person who uses credit has a credit history on file at a credit bureau A credit bureau is a business that gathers, stores, and sells credit information to other businesses A credit bureau is a business that gathers, stores, and sells credit information to other businesses When you apply for/open a new account, a person at that business submits info from your application to the credit bureau When you apply for/open a new account, a person at that business submits info from your application to the credit bureau Each time you use credit or make payments, the business records the transaction Each time you use credit or make payments, the business records the transaction Once a month the business electronically transmits the data about your account to one or more of the 3 big national credit bureaus Once a month the business electronically transmits the data about your account to one or more of the 3 big national credit bureaus

TransUnion, TransUnion, Experian, Experian, Equifax, Equifax, The credit bureau enters the info into your file and stores it under your SSN The credit bureau enters the info into your file and stores it under your SSN You can order a copy of your credit report from one of the above bureaus You can order a copy of your credit report from one of the above bureaus

Usually, a credit bureau will charge you $15 or more to give you your credit information Usually, a credit bureau will charge you $15 or more to give you your credit information When you are denied credit, you can get a free credit report if you ask within 30 days of being denied When you are denied credit, you can get a free credit report if you ask within 30 days of being denied

If you have NO credit or BAD credit, you may have to have a cosigner in order to open any type of credit account If you have NO credit or BAD credit, you may have to have a cosigner in order to open any type of credit account A cosigner is someone who promises to pay if you fail to pay A cosigner is someone who promises to pay if you fail to pay Cosigners risk their credit ratings when they take on this obligation Cosigners risk their credit ratings when they take on this obligation Remember to make payments on or before the due date IN FULL if possible Remember to make payments on or before the due date IN FULL if possible DO NOT BE LATE! DO NOT BE LATE!

What is the typical credit limit for a secured card? How can you best use a secured credit card as a stepping stone to getting an unsecured card? Which is likely to be a better deal: a secured card or an unsecured card? Why?

Nicer Furniture :) Nicer Furniture :) Nicer Furniture :) Nicer Furniture :)

Your credit rating is a measure of creditworthiness based on your credit and financial history Your credit rating is a measure of creditworthiness based on your credit and financial history To earn an excellent credit rating, sometimes called an A-rating, a customer: To earn an excellent credit rating, sometimes called an A-rating, a customer: Pays bills before the due dates, there are no missed payments, and debts are paid off EARLY Pays bills before the due dates, there are no missed payments, and debts are paid off EARLY To earn a good credit rating, sometimes called a B- rating, a customer: To earn a good credit rating, sometimes called a B- rating, a customer: Pays bills on the due date or within the 10 day grace period, pays around the due date but never outside the grace period, does not miss any payments Pays bills on the due date or within the 10 day grace period, pays around the due date but never outside the grace period, does not miss any payments

A fair credit rating is earned by a customer who: A fair credit rating is earned by a customer who: usually pays all bills within the grace period, but occasionally takes longer; late charges are sometimes applied, but normally no reminder is needed; slow in paying but fairly dependable usually pays all bills within the grace period, but occasionally takes longer; late charges are sometimes applied, but normally no reminder is needed; slow in paying but fairly dependable People with a poor credit rating: People with a poor credit rating: usually are denied credit because their payments are not regular; missed some monthly payments and must be reminded frequently; in many cases, they have failed entirely to pay back a debt or have filed for bankruptcy usually are denied credit because their payments are not regular; missed some monthly payments and must be reminded frequently; in many cases, they have failed entirely to pay back a debt or have filed for bankruptcy

Check your credit report from all 3 credit bureaus at least once a year Check your credit report from all 3 credit bureaus at least once a year You are entitled to a free credit report once a year from each of the three bureaus You are entitled to a free credit report once a year from each of the three bureaus Annualcreditreport.com or call Annualcreditreport.com or call Pay your bills early or on time Pay your bills early or on time If you have missed payments, get current and stay current If you have missed payments, get current and stay current

Keep credit card balances low; “maxing out” lowers your credit score Keep credit card balances low; “maxing out” lowers your credit score Pay off debt rather than moving it around Pay off debt rather than moving it around Open new accounts only as needed; having accounts for long periods of time increases your score Open new accounts only as needed; having accounts for long periods of time increases your score Avoid closing credit card accounts because this decreases the “average age” of your accounts Avoid closing credit card accounts because this decreases the “average age” of your accounts

What are some things you can do to maintain a good credit rating? How is an excellent (A-Rating) different from a good (B-Rating)? What can you do to improve your credit rating or score? Why do you think you should follow up and get a free credit report if you are denied credit?

Objective: You will decide what is priceless in life and what can be bought with a credit card by creating a PowerPoint commercial. Objective: You will decide what is priceless in life and what can be bought with a credit card by creating a PowerPoint commercial. Description: MasterCard's Priceless campaign is world-known and an easy format for you to duplicate with your own creative twists on creating a credit card commercial. Description: MasterCard's Priceless campaign is world-known and an easy format for you to duplicate with your own creative twists on creating a credit card commercial.MasterCardPriceless MasterCardPriceless Slide 1: Line 1. Price 1 Slide 2: Line 2. Price 2. Slide 3: Line 3. Price 3 Slide 4: Line 4. Priceless Slide 5: There are some things that money can't buy, for everything else there's MasterCard Slide 6: Advertising Agency: Your Name Slide 1: Line 1. Price 1 Slide 2: Line 2. Price 2. Slide 3: Line 3. Price 3 Slide 4: Line 4. Priceless Slide 5: There are some things that money can't buy, for everything else there's MasterCard Slide 6: Advertising Agency: Your Name

Credit Card Offers Credit card issuers are required to disclose the terms and fees of credit cards in an easy to read box format This is called the Schumer box Must direct consumers to the Federal Reserve website ( )to obtain more information about credit cards, including the following sample credit card offerhttp://

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 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 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 APR’s 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 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. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at 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 Annual Percentage Rate (APR) for Purchases Interest rate paid for purchases Multiple interest rates may be listed - final interest rate may depend on creditworthiness of the applicant Credit cards may charge many different types of interest rates

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 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 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 APR’s 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 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. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at 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 Fixed vs. Variable-rate APR Fixed-rate APR- an APR that cannot change during the period of time outlined in a credit card agreement Variable-rate APR- an APR that may change depending on other factors (such as economic conditions) What is the APR for Purchases for this credit card offer? 14.99% Is this a variable-rate APR or a fixed-rate APR? Variable-rate APR

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 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 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 APR’s 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 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. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at 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 Introductory Rate Introductory rate- the APR that may be charged after a credit card account is opened Will have a different APR (usually higher) after the introductory period ends Not all credit cards have an introductory rate What is the introductory rate for this credit card offer? The introductory rate depends on the creditworthiness of the applicant, but it will be 12.99%, 13.99%, or 14.99%

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 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 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 APR’s 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 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. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at 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 APR for Balance Transfers & Cash Advances A balance transfer is the act of transferring debt from one credit card account to another A cash advance includes withdrawing cash from an ATM using a credit card Balance transfer and cash advance fees may also apply (even if the APR is 0%)

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 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 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 APR’s 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 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. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at 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 Penalty APR and When it Applies Discloses the penalty APR and the penalty terms that trigger the penalty APR to take effect Penalty APR is the interest rate charged on new transactions if the penalty terms in the credit card contract are triggered What is the Penalty APR for this credit card offer? 28.99%

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 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 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 APR’s 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 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. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at 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 How To Avoid Paying Interest on Purchases Explains how you can avoid interest charges by paying credit card bills in full every month Minimum Interest Charge Typically range from $0.50 to $2 per month

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 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 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 APR’s 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 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. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at 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 Set-up and Maintenance Fees Any set-up and maintenance fees for the card Annual fee- a yearly fee that may be charged for having a credit card What is the annual fee for this credit card? $20 Credit cards may charge many different types of fees

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 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 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 APR’s 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 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. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at 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 Transaction Fees Discloses any transaction fees for the card Balance transfer fees Cash advance fees May be charged in addition to APR

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 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 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 APR’s 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 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. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at 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 Penalty Fees Discloses the penalty fees for the card (in addition to Penalty APR) Late-payment- charged when a cardholder does not make the minimum monthly payment by the due date Over-the-limit-charged if the account balance goes over the set credit limit How we calculate your balance Credit card companies can use one of several methods to calculate the outstanding balance on a credit card

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 15.99%  This APR will vary with the market based on the Prime Rate APR for Cash Advances21.99%  This APR will vary with the market based on the Prime Rate Penalty APR and When it Applies 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 APR’s 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 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. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.50. For Credit Card Tips from the Federal Reserve Board To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at 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 Loss of Introductory APR If the card has an introductory rate, this area will list how the lower introductory rate can be lost How can the introductory APR be lost on this card? If the cardholder is more than 60 days late in paying the bill What APR will the cardholder be charged if the introductory rate is lost? The Penalty APR of 28.99%

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