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4.5A Credit card statements

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Presentation on theme: "4.5A Credit card statements"— Presentation transcript:

1 4.5A Credit card statements

2 vocabulary A BILLING CYCLE is a predetermined amount of time set by the credit card company that is used for calculating your credit card bill. A the end of every cycle, the credit card company takes an accounting of your credits and debits and sends you that information in the form of a CREDIT CARD STATEMENT. ACCOUNT NUMBER: Each credit card account has a unique number. CREDIT LINE: The maximum about you can owe at any time.

3 VOCABULARY AVAILABLE CREDIT: The difference between the maximum amount you can owe and that actual amount you owe. BILLING DATE: The date the bill (statement) was written. PAYMENT DUE DATE: On this date the monthly payment must be received by the creditor. TRANSACTIONS: Lists where purchases were made and the date.

4 VOCABULARY DEBIT: The amount charged to your account.
CREDIT: A payment made to reduce your debt. PREVIOUS BALANCE: Any money owed before current billing period. PAYMENTS/CREDITS: Total amount received by the creditor. NEW PURCHASES: The sum of purchases on the current bill. LATE CHARGE: The penalty for late payments from a previous month.

5 VOCABULARY FINANCE CHARGE: The cost of using the credit card for the current billing period. NEW BALANCE: The amount you currently owe. MINIMUM PAYMENT: This amount is the lowest payment the credit card company will accept for the current billing period. AVERAGE DAILY BALANCE: The average amount owed per day during the billing cycle. NUMBER OF DAYS IN BILLING CYCLE: The amount of time, in days, covered by the current bill. APR: The yearly interest rate. MONTHLY PERIODIC RATE: The APR divided by 12.

6 Example one Locate each of the terms listed above on this credit card statement.

7 Example two Explain how the new purchases amount on Mark’s credit card statement was determined.

8 Example Three Explain how the new balance amount on Mark’s credit card statement was determined.

9 Example four Pascual has a credit line of $15,000 on his credit card. His summary is shown above. How much available credit does Pascual have? SUMMARY Previous Balance Payments / Credits New Purchases Late Charge Finance Charge $4,598.12 $4,000.00 $1,368.55 $20.00 $5.78


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