1. Credit—Good? Bad?

2. Watch the video clip think for yourself………… Insert video clip ”Horror Bad Credit” from www.unitedstreaming.com

3. Take the “Credit and Credit Cards Pre-Test” located in the network folder for this class (as shown here).

4. Proceed with Caution!!!!!! Insert video clip ”Proceed With Caution” from www.unitedstreaming.com

5. Check Your Understanding 1.Most people in their late teens and early twenties have credit cards. TRUEFALSE 2. Very few young people have more than one or two credit cards. TRUEFALSE 3. What percent of people in their late teens and early twenties have credit cards? _____________ 4. As of December, 2002, the average young person had a credit card balance of: ___________

6. Bad Credit Can Hurt You…………. 1. A bad credit history generally stays with you for _____________. 2. Your credit rating may be checked when you apply for a job. TRUEFALSE Insert video clip ”Bad Credit Can Hurt You” from www.unitedstreaming.com

7. How many credit cards do you need? To use a credit card as a “purchase enabler” means you're buying things that you want even though you don't have the money in the bank now. TRUEFALSE Insert video clip ”How Many Credit Cards Do You Need?” from www.unitedstreaming.com

8. Credit Line Interest is the extra money you must pay a lender because they gave you the money in the first place. TRUEFALSE Insert video clip ”Credit Line Spendable Income” from www.unitedstreaming.com

9. Pay More Than the Minimum 1. If you pay the "minimum payment amount" each month, you will pay off your credit card balance in a reasonable amount of time. ______________ 2. If you pay only the "minimum payment amount" each month on the loan listed, how long will it take you to pay off the balance? Show your calculations. Insert video clip ”Pay More Than The Minimum” from www.unitedstreaming.com

10. Pitfalls and Blunders 1. If your credit card is lost or stolen and you notify your credit card company right away, your legal responsibility is limited to _____________. 2. A "loan consolidation" means you have convinced your credit card company to reduce your interest rate. Insert video clip ”Pitfalls and Blunders” from www.unitedstreaming.com

11. Take Notices Seriously Insert video clip ”Proceed With Caution” from www.unitedstreaming.com

12. 1. A "balance transfer" is where you pay off one credit card by transferring your balance to another credit card. TRUE FALSE 2. If your credit card has a high interest rate, don't waste your time asking them to reduce the rate, because credit card companies would never agree to cut your interest rate. TRUE FALSE 3. A "balance transfer" means you have moved your credit card balance from one credit card company to another. TRUE FALSE

13. ATM (Automated Teller Machine) Cash Advances Using your credit card to get cash advances make good economic sense.TRUE FALSE Insert video clip ”ATM” from www.unitedstreaming.com

14. Interest Rates 1. If you use a debit card to make a purchase, the purchase price will be subtracted from your checking or savings account at your bank. TRUE FALSE 2.If a credit card company gives you a very low interest rate, the company cannot raise that rate for at least two years. TRUE FALSE Insert video clip ”Interest Rates” from www.unitedstreaming.com

15. Fees Can Hurt Insert video clip ”Fees Can Hurt” from www.unitedstreaming.com

16. Review: Credit and Credit Cards Insert video clip ”Review Credit and Credit Cards” from www.unitedstreaming.com