1. Understanding a Credit Card
“Take Charge of Your Finances”

2. What is Credit?
Credit- when goods, services or money is received in exchange for a promise to pay a definite sum of money at a future date
Credit is derived from the Latin word “credo” meaning “I believe”
Why would a person want to use credit?

3. Obtaining Credit
Lender determines whether to grant the borrower credit based on perceived creditworthiness
Borrower requests to receive credit from a lender
Borrower is in need of credit
Lender- person or organization who has the resources to provide the borrower money
Creditworthiness- an individual’s ability and willingness to pay the money back
Borrower- person or organization that is receiving the money
Why would a lender assess a borrower’s creditworthiness before granting credit?

4. Paying Back Credit
Borrower is usually expected to pay interest in addition to the money borrowed
If approved, the borrower will receive money from the lender
Borrower pays money back
Interest - the price of money
Why would a lender charge a borrower interest?

5. Different Forms of Credit
How are these forms of credit different?
VS.
Closed-end Credit
Open-end Credit

6. Closed-end vs. Open-end Credit
Closed-end credit
Open-end
(revolving) credit
Definition
Purpose of loan (what is purchased)
Credit extended in advance
A one-time loan
May be used for a variety of purposes
Specified in application

7. Closed-end vs. Open-end Credit
Closed-end credit
Open-end credit
Payments
Loan Amount
Examples
Varies- can be paid in one payment or a series of equal or unequal payments
Specified number of equal payments
Agreed upon during the application process
May be increased
Mortgage, automobile, education loans
Credit cards

8. What is a Credit Card?
Buy Now, Pay Later
Pre-approved credit which can be used for the purchase of goods and services now and payment of them later
May continue to borrow as long as the credit limit (maximum dollar amount loaned) is not exceeded
Credit limit varies based upon the cardholder’s perceived creditworthiness

9. Annual Percentage Rate (APR)
Credit Card Interest
Interest is charged each month the balance is not paid in full
Rate at which interest is charged is referred to as:
Annual Percentage Rate (APR)
The cost of credit expressed as
a yearly interest rate

10. Minimum Payments
Required to make at least a minimum payment each month
Usually only a small percentage (2.5-5%) of the total balance due

11. ~ Total amount of interest paid
Minimum Payments
To prepare for her first semester of college, Miranda purchased a new computer for $1000 and textbooks for $500, spending a total of $1500 on her credit card charging 15% APR. How much would Miranda pay in interest if she makes the minimum payment?
Payment Made
~ Time to pay off card
~ Total amount of interest paid
~ Total amount paid
Full Payment
Partial Payment
Minimum Payment
$1500
1 month $0
$1500
$135
1 year
$125
$1625
$30
11 years
$1413
$2913

12. Advantages & Disadvantages to Using Credit Cards
Convenient payment tool
Useful for emergencies
Often required to hold a reservation
Able to purchase “big ticket” items and spread out payments
Protection against fraud
Opportunity to establish a positive credit history
Online shopping is safer than using a debit card
Possibility of receiving bonuses
Interest can be costly when a balance is revolved
Additional penalty fees may apply
Tempting to overspend
Risk of identity theft
Responsible for lost/stolen cards
Applying for multiple accounts in a short period of time can lower your credit score

13. What is the difference between a credit card and a debit card?
What is a Debit Card?
Plastic card which looks like a credit card but is electronically connected to the cardholder’s bank account
Money is immediately withdrawn from the cardholders checking account
What is the difference between a credit card and a debit card?

14. Creditworthiness
Credit card approval depends on borrower’s perceived creditworthiness
How a person uses a credit card affects their creditworthiness
Creditworthiness is determined by a credit report and/or credit score

15. Credit History Credit Report Credit Score
A record of a consumer’s credit history that includes information about credit card use as well as the use of other types of credit
Credit Score
A number that summarizes an individual’s credit record and history; a numeric “grade” of a consumer’s financial reliability
Credit cards can have a positive or negative impact on an individual’s credit history

16. Positive Credit Card Use
Helps develop positive credit history and credit report
Proper credit card use
Earn a high credit score
A high credit score gives the opportunity to have lower interest rates on loans, the privilege to use different forms of credit, and an easier approval process for future credit

17. Positive Credit Card Use
Examples of positive credit card behaviors:
Paying credit card balances in full every month
Paying credit card bills on time
Applying for only credit cards that are needed
Keeping track of all charges by keeping receipts and using a check register
Checking the monthly credit card statement for errors

18. Negative Credit Card Use
Develops negative credit history and credit report
Improper credit card use
Lower credit score
Consumers with low credit scores have difficulty getting loans, difficulty renting apartments, pay higher interest rates, pay higher insurance rates, and have difficulty obtaining a job

19. Negative Credit Card Use
Examples of negative credit card behaviors:
Making late credit card payments
Paying only the minimum payment
Exceeding the card’s credit limit (usually triggers a penalty fee)
Charging items that can’t be paid off immediately
Owning too many credit cards

20. NO Credit
If an individual has not used credit, they will not have any information in their credit report
Not having a credit report can cause an individual to be denied credit

21. Credit Card Offers Called the Schumer Box
Credit card issuers are required to disclose the terms and fees of credit cards in an easy to read box format
Called the Schumer Box
Must direct to the Federal Reserve website ( to obtain more information about credit cards

22. Annual Percentage Rate (APR) for Purchases
Interest Rates and Interest Charges
Annual Percentage Rate (APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%
This APR will vary with the market based on the Prime Rate
APR for Cash Advances
21.99%
Penalty APR and When it Applies
28.99%
This APR may be applied to your account if you:
Make a late payment;
Go over your credit limit;
Make a payment that is returned; or
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
How to Avoid Paying Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the Federal Reserve Board
To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at
Fees
Set-up and Maintenance Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.
Annual Fee: $20
Account Set-up Fee: $20 (one-time fee)
Participation Fee: $12 annually ($1 per month)
Additional Card Fee: $5 annually (if applicable)
Transaction Fees
Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees
Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
Credit cards may charge many different types of interest rates
Annual Percentage Rate (APR) for Purchases
Interest rate paid for purchases
Multiple interest rates may be listed - final interest rate may depend on creditworthiness of applicant

23. Fixed vs. Variable-rate APR Interest Rates and Interest Charges
Fixed-rate APR- cannot change during the period of time outlined in a credit card agreement
Variable-rate APR- may change depending on other factors (such as economic conditions)
Interest Rates and Interest Charges
Annual Percentage Rate (APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%
This APR will vary with the market based on the Prime Rate
APR for Cash Advances
21.99%
Penalty APR and When it Applies
28.99%
This APR may be applied to your account if you:
Make a late payment;
Go over your credit limit;
Make a payment that is returned; or
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
How to Avoid Paying Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the Federal Reserve Board
To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at
Fees
Set-up and Maintenance Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.
Annual Fee: $20
Account Set-up Fee: $20 (one-time fee)
Participation Fee: $12 annually ($1 per month)
Additional Card Fee: $5 annually (if applicable)
Transaction Fees
Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees
Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
What is the APR for Purchases for this credit card offer?
14.99%
Is this a variable-rate APR
or a fixed-rate APR?
Variable-rate APR

24. Interest Rates and Interest Charges
Introductory Rate
Introductory rate- APR that may be charged after a credit card is opened
Will have a different APR (usually higher) after the introductory period ends
Not all credit cards have an introductory rate
Interest Rates and Interest Charges
Annual Percentage Rate (APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%
This APR will vary with the market based on the Prime Rate
APR for Cash Advances
21.99%
Penalty APR and When it Applies
28.99%
This APR may be applied to your account if you:
Make a late payment;
Go over your credit limit;
Make a payment that is returned; or
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
How to Avoid Paying Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the Federal Reserve Board
To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at
Fees
Set-up and Maintenance Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.
Annual Fee: $20
Account Set-up Fee: $20 (one-time fee)
Participation Fee: $12 annually ($1 per month)
Additional Card Fee: $5 annually (if applicable)
Transaction Fees
Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees
Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
What is the introductory rate for
this credit card offer?
The introductory rate depends on the creditworthiness of the applicant, but it will be 12.99%, 13.99%, or 14.99%

25. APR for Balance Transfers & Cash Advances
Interest Rates and Interest Charges
Annual Percentage Rate (APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%
This APR will vary with the market based on the Prime Rate
APR for Cash Advances
21.99%
Penalty APR and When it Applies
28.99%
This APR may be applied to your account if you:
Make a late payment;
Go over your credit limit;
Make a payment that is returned; or
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
How to Avoid Paying Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the Federal Reserve Board
To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at
Fees
Set-up and Maintenance Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.
Annual Fee: $20
Account Set-up Fee: $20 (one-time fee)
Participation Fee: $12 annually ($1 per month)
Additional Card Fee: $5 annually (if applicable)
Transaction Fees
Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees
Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
APR for Balance Transfers & Cash Advances
Balance transfer - act of transferring debt from one credit card to another
Cash advance includes withdrawing cash from an ATM using a credit card
Balance transfer and cash advance fees may also apply (even if the APR is 0%)

26. Interest Rates and Interest Charges
Penalty APR and
When it Applies
Discloses the penalty APR and the penalty terms that trigger it to take effect
Penalty APR - interest rate charged on new transactions if the penalty terms in the contract are triggered
Interest Rates and Interest Charges
Annual Percentage Rate (APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%
This APR will vary with the market based on the Prime Rate
APR for Cash Advances
21.99%
Penalty APR and When it Applies
28.99%
This APR may be applied to your account if you:
Make a late payment;
Go over your credit limit;
Make a payment that is returned; or
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
How to Avoid Paying Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the Federal Reserve Board
To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at
Fees
Set-up and Maintenance Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.
Annual Fee: $20
Account Set-up Fee: $20 (one-time fee)
Participation Fee: $12 annually ($1 per month)
Additional Card Fee: $5 annually (if applicable)
Transaction Fees
Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees
Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
What is the Penalty APR for this credit card offer?
28.99%

27. Interest Rates and Interest Charges Minimum Interest Charge
Annual Percentage Rate (APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%
This APR will vary with the market based on the Prime Rate
APR for Cash Advances
21.99%
Penalty APR and When it Applies
28.99%
This APR may be applied to your account if you:
Make a late payment;
Go over your credit limit;
Make a payment that is returned; or
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
How to Avoid Paying Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the Federal Reserve Board
To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at
Fees
Set-up and Maintenance Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.
Annual Fee: $20
Account Set-up Fee: $20 (one-time fee)
Participation Fee: $12 annually ($1 per month)
Additional Card Fee: $5 annually (if applicable)
Transaction Fees
Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees
Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
How To Avoid Paying
Interest on Purchases
Explains how you can avoid interest charges by paying credit card bills in full every month
Minimum Interest Charge
Typically range from $0.50 to $2 per month

28. Interest Rates and Interest Charges Set-up and Maintenance Fees
Credit cards may charge many different types of fees
Interest Rates and Interest Charges
Annual Percentage Rate (APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%
This APR will vary with the market based on the Prime Rate
APR for Cash Advances
21.99%
Penalty APR and When it Applies
28.99%
This APR may be applied to your account if you:
Make a late payment;
Go over your credit limit;
Make a payment that is returned; or
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
How to Avoid Paying Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the Federal Reserve Board
To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at
Fees
Set-up and Maintenance Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.
Annual Fee: $20
Account Set-up Fee: $20 (one-time fee)
Participation Fee: $12 annually ($1 per month)
Additional Card Fee: $5 annually (if applicable)
Transaction Fees
Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees
Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
Set-up and Maintenance Fees
Any set-up and maintenance fees for the card
Annual fee- a yearly fee that may be charged for having a credit card
What is the annual fee
for this credit card?
$20

29. Interest Rates and Interest Charges
Annual Percentage Rate (APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%
This APR will vary with the market based on the Prime Rate
APR for Cash Advances
21.99%
Penalty APR and When it Applies
28.99%
This APR may be applied to your account if you:
Make a late payment;
Go over your credit limit;
Make a payment that is returned; or
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
How to Avoid Paying Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the Federal Reserve Board
To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at
Fees
Set-up and Maintenance Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.
Annual Fee: $20
Account Set-up Fee: $20 (one-time fee)
Participation Fee: $12 annually ($1 per month)
Additional Card Fee: $5 annually (if applicable)
Transaction Fees
Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees
Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
Transaction Fees
Discloses any transaction fees for the card
Balance transfer fees
Cash advance fees
May be charged in addition to APR

30. Interest Rates and Interest Charges
Penalty Fees
Discloses the penalty fees for the card (in addition to Penalty APR)
Late-payment- charged when a cardholder does not make the minimum monthly payment by the due date
Over-the-limit-charged if the account balance goes over the set credit limit
Interest Rates and Interest Charges
Annual Percentage Rate (APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%
This APR will vary with the market based on the Prime Rate
APR for Cash Advances
21.99%
Penalty APR and When it Applies
28.99%
This APR may be applied to your account if you:
Make a late payment;
Go over your credit limit;
Make a payment that is returned; or
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
How to Avoid Paying Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the Federal Reserve Board
To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at
Fees
Set-up and Maintenance Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.
Annual Fee: $20
Account Set-up Fee: $20 (one-time fee)
Participation Fee: $12 annually ($1 per month)
Additional Card Fee: $5 annually (if applicable)
Transaction Fees
Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees
Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill

31. How we calculate your balance
Interest Rates and Interest Charges
Annual Percentage Rate (APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%
This APR will vary with the market based on the Prime Rate
APR for Cash Advances
21.99%
Penalty APR and When it Applies
28.99%
This APR may be applied to your account if you:
Make a late payment;
Go over your credit limit;
Make a payment that is returned; or
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
How to Avoid Paying Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the Federal Reserve Board
To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at
Fees
Set-up and Maintenance Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.
Annual Fee: $20
Account Set-up Fee: $20 (one-time fee)
Participation Fee: $12 annually ($1 per month)
Additional Card Fee: $5 annually (if applicable)
Transaction Fees
Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees
Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
How we calculate your balance
Credit card companies can use one of several methods to calculate the outstanding balance on a credit card
What method is used to calculate the balance on this card?
Average daily balance
(including new purchases)

32. Loss of Introductory APR
If the card has an introductory rate, this area will list how the lower introductory rate can be lost
Interest Rates and Interest Charges
Annual Percentage Rate (APR) for Purchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market based on the Prime Rate.
APR for Balance Transfers
15.99%
This APR will vary with the market based on the Prime Rate
APR for Cash Advances
21.99%
Penalty APR and When it Applies
28.99%
This APR may be applied to your account if you:
Make a late payment;
Go over your credit limit;
Make a payment that is returned; or
Do any of the above on another account that you have with us.
How long will the Penalty APR apply? If your APR’s are increased for any of these reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
How to Avoid Paying Interest on Purchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month.
Minimum Interest Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card Tips from the Federal Reserve Board
To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at
Fees
Set-up and Maintenance Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $250, initial available credit will be only about $209.
Annual Fee: $20
Account Set-up Fee: $20 (one-time fee)
Participation Fee: $12 annually ($1 per month)
Additional Card Fee: $5 annually (if applicable)
Transaction Fees
Balance Transfer: Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: $100)
Cash Advance: Either $5 or 3% of the amount of each cash advance, whichever is greater
Foreign Transaction: 2% of each transaction in U.S. dollars
Penalty Fees
Late Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is more than $1000
Over-the-limit: $29
Returned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60 days late in paying your bill
How can the introductory APR be lost on this card?
If the cardholder is more than 60 days late in paying the bill
What APR will the cardholder be charged if the introductory rate is lost?
The Penalty APR of 28.99%

33. Credit Card Benefits Make sure to know all terms and conditions
Cash Rebates
Warranties for items purchased
Frequent Flyer Miles
Travel accident insurance
Other benefits?
Make sure to know all terms and conditions
May charge fees or higher interest rates

34. How do I obtain a credit card?
Comparison shop for a credit card
Compare credit card offers and determine which card to apply for
Complete a credit application
A form requesting information about a person’s ability to repay
Lenders conduct a credit investigation
A comparison of information on credit application to information on a credit report
Approval?
Applicant may or may not be approved (depends on creditworthiness)
Credit card companies send pre-approved credit card applications in the mail when the individual has passed their initial credit check