1. BLU # 19: Charge it! What’s the difference between debit and credit?
Can you charge items without paying interest?
Does using your credit card build credit?
What’s the average interest rate on a savings account?
What’s the average interest rate on a credit card?

2. My 1st credit card!
New laws: can’t get a credit card until you’re 21 unless your parents co-sign
Why would they pass such a law?

3. Getting the best card
Capital One Visa
Citi Forward
APR
Cash Advance APR
Annual fee
Late pmt fee
“Perks”
Which card is a better deal? Fill in the chart & then answer the question in your opinion & explain your answer.

4. Grace Period
Length of time between when you buy an item & begin to pay interest on it
You can buy something on Monday, pay it off on Saturday and pay zero in interest
Paying bills on time helps build good credit

5. How credit card interest works….
Minimum payments on cards are usually 2% of total
So, if you owe $10,000 and pay the minimum ($200) per month….

6. VS. But, if you are in a bind …
Credit cards are better than pay day loans, cash calls, etc…..
VS.

7. Loan Amount Loan Fee APR # of payments Total Cost $5,000 $75 84
Payment amount
Total Cost
$5,000
$75
116.47 84
$486.58
$2,525
139.22 47
$294.46

9. Thinking time… What is an advantage of having a credit card?
What is a disadvantage of having a credit card?
What’s an advantage of using a debit card? What’s a disadvantage?
Why might it be a disadvantage to have a credit card with a spending limit of $50,000?
When you turn 21 will you get a credit card? Explain.