1. Online Shopping and Credit Cards
Module 8.1
Online Shopping and Credit Cards

2. Credit Cards
One of the primary sources of purchases for most consumers in the country
The average American has $10,000 worth of debt, mostly in credit cards
A credit card is different from a debit card
debit cards remove money from your checking account when a purchase is made
with credit cards, you make monthly payments on your balance

3. Revolving Credit Loans
A consumer line of credit that can be used up to a certain limit or paid down at any time
You can use the amount for which you’re approved
Must be repaid to the credit card issuer
If not paid in full at the end of the month, it will accumulate interest on the balance due
you can use up to the approved amount as long as you continue making payments
(the earlier you pay off, the less interest you’ll pay)

4. Using Credit Safer than cash
When you pay with a credit card, the card company pays the bill for you
They send you a statement (bill) at the end of each month showing what you purchased
Also shows: fees and minimum payment (least amount you can pay on your balance without getting charged fees) owed
Read the FINE PRINT before getting a credit card

5. Review Statement Credit card companies make mistakes
Make sure nobody else is using your card
You have the right to dispute charges
Explained on the back of the statement
Do it in a timely manner
They can NOT change interest rates without telling you
If there’s a special introductory rate like 0% interest, make sure you read to see when it expires

6. Credit Card Statement
Purchases or new charges – list of what you bought and rate of interest you are paying
Payments and credits – how much you have paid on your balance since the last statement
Due date or pay-by date – pay BEFORE that date
Credit Limit – maximum amount you are allowed to charge. Avoid over-the-limit fees.

7. Module 8.2
Credit Cards: Shopping Online

8. Online Shopping Tips (2/3 of people use the internet to shop)
Know exactly who you’re dealing with (reputable companies)
Know exactly what you’re buying
Know the terms of the deal
Know exactly how much you will be charged
Pay by credit card
Print and save records of your online purchases
Checks the site’s security ( secure)
Check the site’s privacy policy

9. Buying Online Pros Cons Stores never close No parking problems
No aggressive salespeople
Easy to compare
Hard to find products
No local sales tax
Bargain prices
Wait for delivery
Delay in receiving products
S&H
Reliability of sellers?
Can’t negotiate prices
Can’t see product in person
Potential for inferior products