2. The ABCs of Credit Card Finance Essential Facts for Students 2007 Carol A. Carolan, Ph.D.

3. Essential Facts … Two Groups of Information Credit Card Costs Credit Card Behaviors 2

4. Credit Card Costs 3

5. Annual Fees Interest Annual Percentage Rate (APR) Average Daily Balance Method Cash Advances Convenience Checks Default Rates 4

6. Low Interest Introductory Rates Balance Transfers Late Fees Over Credit Limit Fees Bounced Check Fees Currency Conversion Fees 5

7. Choosing a Credit Card 6

8. Look For: A Low Annual Percentage Rate (APR) No Annual Fee A Long Grace Period Average Daily Balance Method Low Penalty Rates 7

9. Types of Credit Card Users Convenience Users Revolvers 8

10. Dos and Donts 9

11. One Card Student Loans for Tuition Wants vs. Needs Convenience Pay More Than the MMP Be a Manager 10

12. Dont Skip Payments Pay on Time Dont Exceed Your Credit Limit Cash Advances Convenience Checks Be Wary of Teaser Rates 11

13. Credit Card Shuffle Low Credit Limit Quickly Mail Payments Save Receipts Change of Address Lost and Stolen Cards 12

14. Theres Always a Solution 13

15. Getting Out of Debt Dont Deny the Problem Stop Using Your Card Contact Your Credit Card Issuer Get a Job Reduce Expenses Talk about Your Problems Debt Consolidation 14

16. Credit Reports & Credit Scores 15

17. Credit Report Collection of Information Financial Report Card Lenders Use this Information 3 Main Credit Reporting Agencies Regularly Review Your Credit Reports 16

18. Credit Score Numeric Value Applied to a Credit Report Usually Called a FICO Score Higher is Better 17

19. What Goes Into Our Credit Scores? Pay Bills on Time Unresolved Debt Number of Cards and Their Balances How Long Quest for New Credit 18

20. Consequences of Irresponsible Credit Card Use 19

21. High Interest Rates Difficulty Renting an Apartment Denied Employment Graduate School Rejection Higher Insurance Premiums Big Bucks for Cell Phones Denial of Credit 20

22. Identity Theft 21

23. Signs of Identity Theft Card/Statement Not Requested Statement Not Received Unauthorized Charges Denied Credit Debt Collectors 22

24. Minimize the Risk… Keep Personal Information Personal Dont Use Social Security Number Leave Social Security Card Home Carry Only Whats Needed Photo ID Credit Card Know Your Billing Cycles 23

25. Shred Receipts Use the Post Office Creative Passwords Purchase on Secure Websites Keep Personal Information Safe Review Credit Reports Computer Virus Protection 24

26. Victims of Identity Theft Should… Contact the Big Three Fraud Alert Order Free Credit Reports & Review Call Fraud Departments Close Fraudulent Accounts File a Police Report Contact the FTC 25