ELISSA VERT 3 RD HOUR 02/25/15 Credit Cards – The Real Cost.

Slides:

Advertisements

Similar presentations

4.1 Introduction to Consumer Credit

Advertisements

Credit Chapter 10.

Using Credit Chapter 25, pgs

Good vs. Bad Credit Credit – the ability to borrow money and pay it back later. Good credit means: Lenders want to loan money to you because you have.

Section 2- Getting Started with Credit CHAPTER 7.

Teacher Instructions 1.Print the lesson, 2.Display slide 2 with Procedure step 1 in the lesson. 3.Display slides 3 and 4 with Procedure step 4 to use as.

Teacher instructions: 1.Print the lesson, 2.Display slide 2 with Procedure steps 1 and 2 in the lesson. 3.Display slide 3 with Procedure step 4. Draw lines.

Personal Finance Credit Review JEOPARDY 100 Definitions Types of Types of Credit 4 C’s of 4 C’s of Credit Your Rights Credit Report Potpourri

Introduction to Business & marketing

What you need to Know! What does this mean? What about interest?

Understanding Loans and Borrowing Money. Development of Credit  In the Past  Credit Today.

What is credit?. VOCAB TO KNOW! Credit : trust given to another person for future payment of a loan, credit card balance, etc Creditor : A person or company.

Credit. CREDIT DEFINITIONS Credit Trust given to another person for future payment of a loan, credit card balance, etc. Creditor A person or company to.

CALM.  Able to buy needed items now and pay later.  Don’t have to carry cash  Creates a record of purchases  More convenient than writing cheques.

Credit and Its Use.

Unit 4 - Good Debt, Bad Debt: Using Credit Wisely PG 73.

Credit You're in Charge What is Credit ??? Credit is an arrangement to Receive cash, goods, or services now and pay for them in the future!

1. What is Credit and What is Debt? 2. Using Credit: The Rewards & Risks 3. Four Types of Debt 4. The Cost of Using Credit 5. Running the Numbers.

Credit.  Credit (from Latin credere translation. "to believe") is the trust which allows one party to provide resources to another party where that second.

Consumer Math p Definitions  Down payment – part of the price paid at the time of purchase  Financed – borrowed  Mortgage – a property loan.

Math, Banking, and Credit Unit

Financing Unit 6.

Credit Intro to Credit & Establishing Good Credit.

Credit Fundamentals 18-1.

Back to Table of Contents pp Chapter 25 What Is Credit?

Consumer Credit Chapter 11.

Credit. Bell Ringer 1.Is a credit card good or bad? 2.What would be considered good credit? 3.On average how many credit cards does the average household.

Using Credit. Terms to know Credit Creditor Revolving Charge Account Installment Account Vehicle leasing Cash loan Collateral Cosigner Home equity loan.

Going Into Debt Americans and Credit. What is Credit? Credit: is the receiving of funds either directly or indirectly to buy goods and services now with.

Credit Fundamentals Chapter Using Credit Two parties involved: 1.Debtor – Anyone who buys on credit or receives a loan 2.Creditor – The one who.

 Buying on credit = buy goods and services now and pay for them later (usually with interest)  Having credit depends on the suppliers’ confidence in.

CREDIT – Part 2 Business Issues. Credit Cards Paid over a variable amount of time Finance charge (interest) is called annual percentage rate (APR) expressed.

Going Into Debt $$$. Americans & Credit Credit allows people to own homes, improve their communities and purchase other items instead of waiting. Credit.

Building Credit RisksTrouble Types of Credit Fees Final Jeopardy.

Annual Percentage Rate (APR) The amount it costs you a year to use credit, expressed as percentage rate Interest, transaction fees, and service charges.

Buy Now Pay Later….  How to analyze the advantages & disadvantages of consumer credit  How to distinguish among various types of consumer credit  How.

 the ability to borrow money in return for the promise of REPAYMENT  Before using credit you should ask your self:  Is it a want or a need?  Do you.

SESSION 3: FINANCIAL GOAL SETTING, SPENDING, AND CREDIT TALKING POINTS on SETTING & ACHIEVING FINANCIAL GOALS FINANCIAL GOAL SETTING, SPENDING, AND CREDIT.

Going into debt.  Credit- The receiving of money either directly or indirectly to buy goods and services today with the promise to pay for them in the.

Credit Basics. Some old stats 83% of college students have at least one credit card 45% of college students are in credit card debt –Average debt over.

Chapter 4.  What is Credit? ◦ Principal + Interest  Installment Debt ◦ Equal Payments ◦ Durable Goods ◦ Longer Term = Lower Payment BUT ◦ More Interest.

Chapter © 2010 South-Western, Cengage Learning Credit in America Credit: What and Why Types and Sources of Credit 16.

Going Into Debt Chapter 4. Americans and Credit Chapter 4, Section 1.

Credit Cards Rules and Legislation. How does a credit card work?  Purchase Item: Approval: Sign  Merchant sends receipt to bank gets credit for transaction.

Credit, Credit Cards, Scores and Compound Interest Today, you will need: Spirals, writing utensils, brains. Please, and thank you.

© 2013 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 16 What is Credit?. Borrower(Debtor) – Someone who borrows money Creditor – Person or company who loans money or extends credit.

 Investing: The purchase of anything of value with the expectation that its value will increase.  In all investments, THE HIGHER THE RISK THE HIGHER.

Essential Standard 5.00 UNDERSTAND BUSINESS CREDIT AND RISK MANAGEMENT. 1.

Credit. CREDIT DEFINITIONS Credit Trust given to another person for future payment of a loan, credit card balance, etc. Creditor A person or company to.

MoneyWi$e Webinar: Good Credit What is credit?  Ability to borrow money or obtain goods.  Your promise to pay the original cost later or over time plus.

Objective 5.01 Understand Credit Management 1. Main Types of Credit What is credit? –Credit is an agreement to obtain money, goods or services now in.

Credit Cards. When thinking of getting a Credit Card follow the Three C’s: Character: Will you repay the debt? How you used credit before? Do you pay.

6.03-D Getting A Loan Students will understand the loan process related to home ownership.

Chapter 4.  What is Credit?  Installment Debt ◦ Durable Goods ◦ Longer Term = BUT  Longest Terms  Up to 30 years.

Chapter 7 Buying Decisions. Slide 2 Where Can Consumers Get Credit? Credit is the ability to borrow money and pay it back later. 7-2 Getting Started with.

Credit Questions to Consider  What is credit?  Does credit cost?  What are the advantages of using credit?  What happens if I misuse credit?

Chapter 4 Going into debt.

Credit: “confidence in a purchaser's ability and intention to pay, displayed by entrusting the buyer with goods or services without immediate payment.”

Objective 5.01 Credit Management 1. Topics Main types of credit Common advantages and disadvantages of businesses using credit Cost of credit Main factors.

Chapter 4 section 1: Going into debt Credit: receipt of money either directly or indirectly used to buy goods and services in the present with the promise.

Chapter 16 Credit in America  What Is Credit?  Types and Sources of Credit.

Credit The Good, the bad, and the ugly. CREDIT CREDIT CAN MAKE OR BREAK YOUR FUTURE PLEASE PAY ATTENTION TO THIS IMPORTANT LIFE LESSON – IT IS SERIOUSLY.

Unit Four Good Debt, Bad Debt: Using Credit Wisely.

Credit Test Review. What card takes money directly from your checking or savings account?  Debit Card.

Objective 5.01 Credit Management 1. Topics Main types of credit Common advantages and disadvantages of businesses using credit Cost of credit Main factors.

Understanding Debt Federally insured by NCUA Great Rates. Personal Service. chevronfcu.org 

Using Credit Wisely Ch. 14. Understanding Costs  Before you can compute the cost of credit, you have to know four things:  The amount you are borrowing.

4.1 A Notes: Intro to consumer credit

Compute finance charges for installment purchases.

Presentation transcript:

ELISSA VERT 3 RD HOUR 02/25/15 Credit Cards – The Real Cost

Vocabulary Credit: Confidence in a purchaser's ability and intention to pay, displayed by entrusting the buyer with goods or services without immediate payment. Debtor: Is a person who is in debt or under financial obligation to another. Creditor: Is a person or firm to whom money is due. Asset: Is a single item of ownership having exchange value. Earning Power: A business's ability to generate profit from conducting its operations. Credit Rating: Is an estimate of the ability of a person or organization to fulfill their financial commitments, based on previous dealings.

Vocabulary (Continued) Credit Reporting Agency: This term refers to businesses that maintain historical information pertaining to credit experience on individuals or businesses. The data is collected from various sources, most commonly firms extending credit such as credit card companies, banks and credit unions. They also collect information from public records, such as bankruptcies. FICO Score: Are credit scores most lenders use to determine your credit risk. You have three FICO scores, one for each of the three credit bureaus - Experian, TransUnion, and Equifax. Installment Plan: A credit system by which payment for merchandise is made in in stallments over a fixed period of time.

Vocabulary (Continued) Down Payment: A type of payment made in cash during the onset of the purchase of an expensive good/service. The payment typically represents only a percentage of the full purchase price; in some cases it is not refundable if the deal falls through. Interest: Is money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt. Finance Charges: A finance charge is any fee representing the cost of credit, or the cost of borrowing. It is interest accrued on, and fees charged for, some forms of credit. It includes not only interest but other charges as well, such as financial transaction fees.

Living room Set The couch I am going to purchase is the Darcy Cobblestone Sectional for $ from Art Van. I thought about purchasing this set, but as a single couch and loveseat, plus a brand new HD TV, but that set is $1, This sectional is upholstered with micro suede for durability. The cushion cores are constructed of low melt fiber wrapped over high quality foam.

Living Room Set – Cost Analysis Couch set for $678 plus tax of $ Which equals to a total of $ Saving Up Method If I paid $300 a month, then it would take me 2.4 months to pay it off. $718.68/300=2.39 (2.4) months Get It Now Method I have a credit card with 11% interest and no other fees if I pay it on time every month. I can pay $300 per month which is more than the minimum amount due. According to the Bankrate Calculator, it would take 3 months to pay it off. I would also pay $11.36 in interest $300*3= $900 Total $ = $222 Finance Charges

Home Entertainment System I am purchasing a Sony Smart TV for $ plus tax, from BestBuy, which would be in total, $636 I am also purchasing a Yamaha Sound System, from BestBuy, for plus tax which would be in total, $159. The total for both of these together would be $ tax of $45. This would be a complete total of $794.97

Home Entertainment System – Cost Analysis Entertainment Set (TV and sound system) all for a total of $ plus tax of $45 which comes to a total of $ Saving Up Method If I paid $200 a month then it would take me 4 months to pay it off /200=3.97 (4) months Get It Now Method I have a credit card with 11% interest and no other fees if I pay it on time every month. I can pay $200 per month which is more than the minimum payment. According to the BankRate Calculator, it would take me 5 months to pay it off and I would pay $18.61 in interest. $200*5= $1,000 Total $1,000-$749.98= $ Finance Charges

Large Kitchen Appliances I will be purchasing a regridgerator from Home Depot for $949 plus tax of $56.94, which would be a total of $ I am also purchasing an oven from Home Depot for $548 plus tax of $32.88, which would be a total of $ Lastly. I am purchasing a microwave from Home Depot for $69.96 plus tax of $4.19, which would be a total of $ The total for all of these appliances would be $1, plus taxes of $61.13 would be a grand total of $

Large Kitchen Appliances – Cost Analysis Large appliances all for $ plus tax of $61.13 which comes to a total of $1, Saving Up Method If I paid $300 a month then it would take me 5.4 months to pay them off. $ /$300=5.4 months Get It Now Method I have a credit card with 11% interest and no other fees if I pay it on time every month. I can pay $300 per month which is more than the minimum payment. According to the BankRate Calculator it would take me 6 months to pay them off, and I would pay $49.87 in interest. $300*6= $1.800 Total $1,800-$1,628.09= $ Finance Charges

My Education – Cost Analysis My total education cost me $10, Saving Up Method If I paid $500 a month then if would take me 21.4 months to pay off the cost of my degree. $10,713.75/$500=21.4 months Pay For It Now Method I have a credit card with 11% and no other fees if I pay it on time every month. I can pay $500 per month which is more than the minimum payment. According to the BankRate Calculator it would take me 24 months to pay off the cost of my degree, and I would pay $1, in interest. $500*24= $12,000 Total $12,000/$10,713.75= $1.12 Finance Charges

Analysis’ Living room set: Based on the cost analysis results I plan to use the saving up method because I know that I am responsible enough to save up my money and only by what I need for the time being until it is all paid for. Home Entertainment System: Based on the cost analysis results I plan to use the saving up method because it’s not anything that I need right now. I know that I will be able to pay the TV and sound system off steadily. Large Kitchens Appliances: Based on the cost analysis results I plan on using the get it now method, because I know that I have the responsibility to make my monthly payments on time and in the amount that I promised. My Education: Based on the cost analysis results I plan to pay off the student loans in monthly payments, because I know that it would take too long to save up to pay them off. I also know that I would be able to be responsible enough to pay the monthly payments on time.