Credit Cards and Credit Reports Personal Finance Mrs. Brewer.

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Presentation transcript:

Credit Cards and Credit Reports Personal Finance Mrs. Brewer

One Person’s Story

Credit Card Traps Low Introductory Rate Percentage Rate fine print read it…your rates may be subject to change.! Late Fees Over the Credit Limit Fees

Calculating Monthly Interest Assumptions –13.2% APR or 1.1% per month –New Balance $ –Minimum Monthly Payment $54.00

Calculating Monthly Interest DatePrevious Balance Interest Charge Balance Plus Interest Your Monthly Minimum Payment Remaining Unpaid Balance March 23$432.00$4.75$436.75$54.00$382.75

Calculating Monthly Interest DatePrevious Balance Interest Charge Balance Plus Interest Your Monthly Minimum Payment Remaining Unpaid Balance March 23$432.00$4.75$436.75$54.00$ April 23$382.75$4.21$386.96$54.00$332.96

Calculating Monthly Interest DatePrevious Balance Interest Charge Balance Plus Interest Your Monthly Minimum Payment Remaining Unpaid Balance March 23$432.00$4.75$436.75$54.00$ April 23$382.75$4.21$386.96$54.00$ May 23$332.96$3.66$336.62$54.00$ June 23$282.62$3.11$285.73$54.00$ July 23$231.73$2.55$234.28$54.00$ August 23$180.28$1.98$182.26$54.00$ Sept 23$128.26$1.41$129.67$54.00$75.67 October 23$75.67$0.83$76.50$54.00$22.50 Nov 23$22.50$0.25$22.75$54.00$0.00

Credit Card Calculations What was the total interest paid? $22.75 How much did we actually pay for the purchases at the end of 9 months by using the credit card? $454.75

Credit Card Billing Statement

Credit Reports Tricks and Traps Really Free Credit Report

What is a Credit Score? Range from 300 to 850 Positive and Negative Aspects of Credit Credit Cards Car Loans Home Loans Student Loans

Categories of the Credit Score

Your Credit Report

Credit Scenarios…