3. Credit Card Terms APR –Annual Percentage Rate –This is the cost of credit, the interest you pay to the credit card people.

4. Credit Card Terms Annual Fee –Annual charge for using the card –This is a fee that some cards have. Most good credit cards have no annual fee.

5. Credit Card Terms Balance –How much you owe on the credit card –As in, “What is the balance on your credit card?” –Financially smart people never carry any balance on their credit cards.

6. Credit Card Terms Introductory Rate –Low APR used to get you to sign up. –Also encourages balance transfers, usage.

7. Credit Card Terms Late Fee –Charge for missing payments. –A charge anywhere from $10 - $30 will be added for not paying at least a certain amount by the due date.

8. Credit Card Terms Good and Bad Credit –Simply put, Missing or Late Payments = Bad Credit, On Time Payments = Good Credit –Well talk about why we should care about our credit a little later.

9. Credit Card Terms Credit Report –A report card on your payment history –It goes back a long way!

10. Grace Period The time you have to make a payment before interest fees are added. Financially smart people pay off the entire balance of their credit cards within the grace period.

11. Check out my new entertainment center!

12. HOW MUCH DO THEY REALLY COST? 1 $ 2,865.00 717.00 $ 582.00 5 $ 2,383.00 3,275.00 $2,658.00 10 $ 1,893.00 5,876.00 $4,769.00 15 $ 1,504.00 7,943.00 $6,446.00 YEARBALANCETOTAL PAIDTOTAL PAID in INTEREST

13. HOW MUCH DO THEY REALLY COST? 20 $ 1,194.00 9,584.00 $7,779.00 25 $ 949.00 10,888.00 $8,837.00 30 $ 754.00 11,924.00 $9,678.00 35 $ 491.00 12,825.00 $10,316.00 39 $ - 13,583.00 $10,583.00 HOLY MOLY! IT TAKES 39 YEARS AND COSTS $13,583 to pay back $3,000! YEARBALANCETOTAL PAIDTOTAL PAID in INTEREST

14. BY THE TIME I AM DONE PAYING FOR MY STEREO, I AM AN OLD MAN!

16. TAKE THE CREDIT PLEDGE WITH ME NOW.

18. THE REAL COST OF BAD CREDIT?

19. CAR with Good Credit 8.75% APR on Car Loan $290/Month Payment for a $12,000 car. Total Paid on car is about $14,000

20. CAR with Bad Credit 14.75% APR on Car Loan $335/Month Payment for the same car Total Paid on car is about $16,000

21. HOUSE with Good Credit 6.75% APR on Mortgage $1,100/Month Payment for a $150,000 home. Total Paid on House is about $350,000

22. HOUSE with Bad Credit 12.75% APR on Mortgage $1,800/Month Payment for the same house Total Paid on House is about $590,000

23. OTHER COSTS  Not getting the loan in the first place  Extra fees.  Larger down payment required

24. CREDIT CARD COMMANDMENTS Make payments within the grace period. Do not procrastinate! Do not carry a balance at all! Use a no-annual fee card If you get into trouble, contact the card issuer before problem occurs. Budget! Report any changes immediately. (Address, etc)