1. Lesson 8.4 The World of Credit Cards July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved1 Introduction Credit cards are convenient and easy to use. They make it easy to spend money you dont have and may not be able to repay. Each of you will begin to receive multiple credit card applications in the near future, if you havent already. It is extremely important for each of you to understand what a credit card is, how they work and the dangers associated with using them before you actually begin to use them. The average household in the US has 7 or more cards.

2. Lesson 8.4 The World of Credit Cards July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved2 Objectives Explain how a credit card works You should be able to do the following after completing this lesson Identify why people either love or hate credit cards Describe how the basic types of credit cards work Review when interest be charged and how will it be calculated Discuss why you should always pay more than the minimum each month List the fees associated with having and using credit cards Explain why consumer protection laws are important Identify the dangers associated with using credit cards Define the basic types of credit cards and other key terms introduced in this lesson

3. Lesson 8.4 The World of Credit Cards July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved3 8.4.1 – Credits Cards When they were introduced and what they were made of What they are made of today and who has them What they are and what they represent What happens each time you make a purchase with one Why some people love them Why some people hate them About the terms and conditions that come with each In this section, you will learn Why the interest rate is generally higher than traditional loans

4. Lesson 8.4 The World of Credit Cards July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved4 8.4.2 – Types of Credit Cards What the 3 major types of credit cards are How each major type of card works The advantages & disadvantages for each major type In this section, you will learn About the terms and conditions for each type of card

5. Lesson 8.4 The World of Credit Cards July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved5 8.4.3 – Bank Credit Cards Examples of bank cards Who issues bank cards What you can do with a bank card In this section, you will learn What versions of bank cards are available How a standard bank card works How a debit card works and what a PIN number is Why you should not use a debit card to make big-ticket purchases How a secured card works

6. Lesson 8.4 The World of Credit Cards July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved6 8.4.4 – Travel/Entertainment Credit Cards Examples of Travel/Entertainment (T/E) cards What a T/E card is and how one works Where a T/E card can be used In this section, you will learn Who typically uses a T/E card The terms and conditions for T/E cards

7. Lesson 8.4 The World of Credit Cards July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved7 8.4.5 – House Credit Cards Examples of house credit cards How a house card works Where a house card can be used In this section, you will learn Why retail stores issue them to their customers What many people buy with house cards Types of Credit Cards Example You will run the following Interactive Example

8. Lesson 8.4 The World of Credit Cards July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved8 8.4.6 – Credit Card Interest When interest will be charged on a credit card balance What a grace period is and how long it can be What the minimum monthly payment (MMP) is In this section, you will learn What only paying the MMP does Why you should always pay more than the MMP How the MMP is calculated Minimum vs. Fixed Payments Exercise You will run the following Interactive Exercise

9. Lesson 8.4 The World of Credit Cards July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved9 8.4.7 – Credit Card Fees The additional fees you might be charged Why fees are important to the credit card companies Where to find what fees can be charged with a specific card In this section, you will learn Examples of fees you might be charged How much the common fees can cost you

10. Lesson 8.4 The World of Credit Cards July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved10 8.4.8 – Calculating Interest Charges When you will be charged interest on credit card debt How the Previous Balance Method of calculating interest works How the Adjusted Balance Method of calculating interest works In this section, you will learn How the Average Daily Balance Method of calculating interest works About a new method of calculating interest on credit card debt Finance Charges Example You will run the following Interactive Example

11. Lesson 8.4 The World of Credit Cards July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved11 8.4.9 – Consumer Protection Laws Why Consumer Protection Laws are important How the Equal Credit Opportunity Act protects you How the Fair Credit Reporting Act protects you In this section, you will learn How the Truth in Lending Act protects you How the Fair Credit Billing Act protects you How the Credit Repair Organization Act protects you

12. Lesson 8.4 The World of Credit Cards July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved12 8.4.10 – The Dangers of Using Credit Cards About the dangers associated with using credit cards Who had access to credit and credit cards in the past Who has access to credit and credit cards today In this section, you will learn How some people view credit and credit cards as an entitlement Why many people have a problem with companies providing credit cards to college students

13. Lesson 8.4 The World of Credit Cards July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved13 Discussion Questions Why do credit cards have an expiration date? What is the re-aging of a credit card account?