1. Credit Cards

2. What is a Credit card? A plastic card that represents a line of credit A line of credit is an account with money that you can borrow repeatedly Your account will have a limit based on information from your application The money you spend must be paid back

3. Parts of a Credit Card: Front

4. Parts of a Credit Card: Back

5. How Does A Credit Card Work? Step 1 – Authorization Step 2 – Batching Step 3 – Clearing Step 4 – Funding

6. Credit Card Payments When processing is complete you will get a charge on your credit card account Most credit card companies offer several way to make payments Pay online Pay over the phone Pay through the mail Pay at a store or bank Pay with another card (through a balance transfer) Pay through an auto-debit (the company take the money directly from your bank account or pay check) Minimum payment varies based on your credit card, but usually 2% of the balance or $15.00 (whichever is higher)

7. Do credit cards have Fees? Types of Fees: Annual Fee Application Fee APR – Annual Percentage Rate – interest charged on balance Balance Transfer Fee Cash Advance Fee Decline Fee Foreign Transaction Fee Late Fee Over-the-Limit Fee

8. How Can I Apply for a Credit Card? You must be 18 or older and have a job You can complete an application online, through the mail, or in a store Common Parts of a Credit Application: Card Features Personal Information Financial Information Additional User Information Terms and Disclaimers

9. How Can I Avoid Credit Card Debt? Causes of credit card debt: Bad spending – spend more than you can pay back Bad payments – fail to pay the full balance Tips to manage your credit card: Dont buy anything you dont have the money for Keep track of your balance Avoid high interest rates or high annual fees Reserve your card for emergencies Watch your account for any suspicious activity

10. How Do Rewards Programs Work? Common rewards include: Cash back Gas rewards Air miles Travel rewards In addition some offer discounts for travel accommodations, online purchases and more Be sure the carrying costs do NOT exceed its rewards

11. Which Credit Card Should I Choose Compare your options: Annual Fee Credit Level Requirements APR – Annual Percentage Rate Introduction Rates vs. Long Term Rates Rewards Program Reliability