1. Credit Card vocabulary Match Up
Match the terms with their definition
Divide the room in half give them 5 minutes to fill in the terms with their definitions. Have them get close as groups. Put one tap light in the middle of each team (2 lights). After I call out a number each team gets 30 seconds to answer as fast as possible, the first team to tap their light on and answer correctly gets the point.

2. Advantages to using Credit Cards
Convenient payment tool
Protection against fraud
Opportunity to establish a positive credit history
Useful for emergencies
Online shopping is safer than using a debit card because of the Fair Credit Billing Act protection
Often required to hold a reservation
Able to purchase “big ticket” items and spread out payments
Possibility of receiving bonuses, such as frequent flyer miles or cash rebates

3. Disadvantages to using Credit Cards
Interest can be costly when
a balance is revolved
Responsible for lost/stolen cards
Additional penalty fees may apply
Applying for multiple accounts can lower your credit score
Tempting to overspend
Risk of identity theft

4. Credit CREDIT- INTEREST-
When goods, services or money is received in exchange for a promise to pay a definite sum of money at a future date
INTEREST-
The price of money- when referring to credit, interest is the charge for borrowing money

5. The person or organization that is receiving the money from the lender
Lender and Borrower
BORROWER-
The person or organization that is receiving the money from the lender
LENDER-
The person or organization who has the resources to provide the individual with a loan

6. What is the difference between a credit card and a debit card?
Debit Cards
What is a debit card?
A 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Money is immediately withdrawn from the cardholders checking account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?

7. Credit limit is the maximum dollar amount loaned
Credit Card
What is a credit card?
Pre-approved credit which can be used for the purchase of goods and services now and payment of them later
A credit cards credit limit varies based upon an individual’s perceived creditworthiness
Credit limit is the maximum dollar amount loaned
Creditworthiness is an individuals ability and willingness to pay the money back

8. 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

9. 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
Cardholders who only make the minimum payment:
Make slow progress paying off card balance
Pay substantially more than what was initially charged to the card

10. Minimum Payments Amount charged to credit card in one purchase APR
Time to pay off the credit card
Total amount paid in interest
Total amount paid
$2,000
18%
$50.00
62 months
$1,077.25
$3,077.25
$500
12%
$25.00
23 months
$60.67
$560.67

11. Credit History – Positive and Negative Card Use
Credit cards can have a positive or negative impact on an individuals credit history
Credit Report
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, such as auto loans, student loans and mortgage loans
Credit Score
A number that summarizes an individual’s credit record and history. It is a numeric “grade” of a consumer’s financial reliability

12. 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 consumer 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

13. 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

14. 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

15. 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

16. 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

17. Credit Card Offers
Credit card issuers are required to disclose the terms and fees of credit cards in an easy to read box format
This is called the Schumer box

18. Interest Rates and Interest Charges Annual Percentage Rate (APR)
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
Annual Percentage Rate (APR)
for Purchases
This section discloses the interest
paid for purchases on the card. Multiple interest rates may be
listed here, because the final interest rate may depend on the creditworthiness of the applicant

19. Interest Rates and Interest Charges The introductory rate depends
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
Introductory Rate
If the credit card has an introductory rate it will be shown in this section, which is the APR charged during the credit card's introductory period after a credit card account is opened. The card will have a different APR after the introductory period ends
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%

20. Interest Rates and Interest Charges
Variable-rate APR
Some cards will have a variable-rate APR, which is an APR that may change depending on other factors, such as the prime rate. The prime rate is an index that represents the interest rate most banks charge their most credit-worthy customers
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

21. Interest Rates and Interest Charges APR for Balance Transfers
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
This section discloses the interest paid for balance transfers, which is the act of transferring debt from one credit card account to another. Balance transfer fees may apply, even if the balance transfer APR is 0%
What is the APR for balance transfers for this credit card offer?
15.99%

22. 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 Cash Advances
This section discloses the interest paid for cash advances, such as withdrawing cash from an ATM using a credit card. Cash advance fees may also apply
What is the APR for cash advances for this credit card offer?
21.99%

23. 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
Penalty APR and
When it Applies
This section discloses the penalty APR, as well as the penalty terms that trigger the penalty APR to take effect
Penalty APR is the interest rate charged on new transactions if the penalty terms in the credit card contract are triggered
What is the Penalty APR for this credit card offer?
21.99%

24. How To Avoid Paying Interest on 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
How To Avoid Paying
Interest on Purchases
This section explains how you can avoid interest charges on a credit card
How can a cardholder avoid paying interest on a credit card?
By paying credit card bills in full by the due date

25. 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
Minimum Interest Charge
Credit card companies often have a minimum interest amount. These charges typically range from $0.50 to $2 per month and are disclosed in this section of the credit card offer
What is the minimum interest charge for this credit card?
$1.50

26. For Credit Card Tips from the Federal Reserve Board
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
For Credit Card Tips from the Federal Reserve Board
This section directs consumers to the Federal Reserve website to obtain more information about credit cards

27. Set-up and Maintenance Fees Interest Rates and Interest Charges
This section discloses any set-up and maintenance fees for the card, which can include annual fees, account set-up fees, participation fees, and additional card fees
Annual fee is a yearly fee that may be charged for having a credit card
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 annual fee
for this credit card?
$20

28. 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
$5 or 3% of the amount of each cash advance (whichever is greater)
Transcation Fees
This section discloses any transaction fees for the card, which can include balance transfer fees, cash advance fees, and foreign transaction fees
What is the fee for cash
advances for this card?

29. Does this card have an
over-the limit fee?
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
Yes, the over-the-limit fee is $29.
Penalty Fees
This section discloses the penalty fees for the card, which can include late-payment, over-the-limit, and returned payment fees
Late payment fee is charged when a cardholder does not make the minimum monthly payment by the due date
Over-the-limit fee is charged if the account balance goes over the set credit limit

30. How we calculate your balance
What method is used to calculate the balance on this card?
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
Average daily balance
(including new purchases)
How we calculate your balance
Credit card companies can use one of several methods to calculate the outstanding balance on a credit card. The method used is disclosed in this section

31. Loss of Introductory APR
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%
Loss of Introductory APR
If the card has an introductory rate, this area will list how the lower introductory rate can be lost

32. Pre-Approved Credit Card Applications
Credit card companies send pre-approved credit card applications in the mail
If an individual is pre-approved for that particular card, they have passed the initial credit check
Compare credit card offers and determine which card to apply for.

33. Credit Card Safety Tips
Do not leave cards lying around, and report lost or stolen cards promptly
Close unwanted accounts by writing and phone, then cut up the card
Sign card with a signature and “Please see ID”
Do not give out account numbers unless making a purchase
Keep a list of all cards, account numbers, and phone lists separate from cards
Shred all pre-approved credit card offers, applications, or solicitations

34. Online Shopping Safety Tips
1. Use a temporary credit card number
This is a one-time use only number
A set amount will be charged to your credit card
Then a number will be given to you to do your shopping
2. Use a credit card rather than a debit card
Fair Credit Billing Act protect consumers while using a credit card to make purchases

35. Defining Credit Terms
Annual percentage rate (APR): The cost of a loan over a full year expressed as a percentage.
Bankruptcy: Legally getting out of having to repay debts; admitting and accepting financial failure. Destroys credit rating for seven -11 years;
Capital: Assets in the form of cash and securities available to spend and invest
Revolving Charge Account: Used to purchase goods or services in exchange for a promise to pay for the item(s) later.

36. 3 C’s Of Credit to determine if you are fit to have a credit card
CREDIT WORTHINESS
3 C’s Of Credit to determine if you are fit to have a credit card
*Capacity: Ability to fulfill obligations evidenced by diligence at work and prospects of continuing employment or income. Can you repay the Loan?
*Character: The quality of one's reputation or name; financial or economic trustworthiness. Will you repay the loan?
*Collateral: Security on a loan (house, jewelry, car, etc.) What you have in case you do not pay the loan

37. Default Failure to repay a loan
Cosigner: Second signer who guarantees to pay for the loan if the first party ( person who obtains the loan) defaults.
Credit: A loan that allows immediate use of products or services in exchange for a promise to pay in the future.
Credit Bureau: A private corporation that is a clearing house for consumer credit information. Collect information on credit practices of individuals.
Credit rating (FICO): Creditor's evaluation of a debtor's willingness and ability to pay debts based on past performance. Ie: how promptly a person pays his/her debts Ranges from 350 to 850.
Paying bills on time builds a good credit rating
Default Failure to repay a loan

38. Finance Charge The total dollar amount that it costs a consumer to use credit.
TV Paid with Cash
TV Paid with Credit Card
Regularly $400.00
On Sale $360.00
No Interest
Total Cost $360
21% A.P.R.
18 mo. pmts
$26.00 per mo.
$68.00 interest
Months financed X monthly payment.
Total Cost $468

39. Interest Price paid for the use of rented or borrowed money.
Garnishment Your employer pays your creditor before you receive your paycheck.
Interest Price paid for the use of rented or borrowed money.
Principal The original amount of a loan on which interest is based.
Groceries on Credit
Principle = $125.00
Interest = $14.00
Final Cost = $139.00
Clothing on Credit
Principle = $350.00
Interest = $137.00
Final Cost = $487.00
When you make the last payment, will the stereo, clothing, food
you purchased be long gone?

40. 3 Main types of credit: Sales Credit Cash Credit Service Credit
Credit you receive when you make a purchase and promise to pay later.
Cash Credit
Credit you receive when you borrow cash and promise to pay it back later.
Service Credit
Credit given for immediate service one receives (utilities, dentist, hospital, etc.) that will be payed for later.