1. Credit/Financial Literacy Unit Study Guide

2. Credit Vocabulary list Credit Installment Credit Revolving Credit Affinity Credit Cards Annual Fee Co-Branded Credit Cards Store Brand Credit Card APR Incentives/Rewards Over Draft Fee Billing Cycle Grace Period Billing Cycle Late Fee No Payment Fee Debit Card Credit Card Fixed Expense Variable Expense Interest Calculation Cash Advance Convenience Checks Penalty Rates Low Interest Teaser Rates Balance Transfers Zero Interest Rates

3. Vocabulary II Net Income Gross Income Budget Net Worth Assets Liabilities Credit Report Credit Score Over-Credit Limit Fees Bounced Check Fees Currency Conversion Fees Financial Assets

4. ATM (Debit) Card vs Credit Card ATM Card –Takes money directly from your Bank Account –No interest is charged –Sometimes charges a fee (depends where you use it) –Not always accepted Credit Card –Credit Limit is set by lender/company (est. from your credit score) –Charges you interest (if not paid back in full) –Sometimes charges various fees –Typically accepted everywhere

5. Schumer Box A box within the credit card agreement (terms and conditions) where credit card issues detail their basic rates and fees. Example: APR, Late Fees, Annual Fees, Billing Cycle Makes it easier for consumers to; compare credit card offers read/understand the terms and conditions make informed decisions

6. Open Response Credit – a legal agreement which a borrower receives something of value now and agrees to repay the lender at a later date (typically with interest). Your credit limit is based on your credit score. A good credit score is 700 or more. Paying your bills on time, paying more than the minimum due helps to increase your credit score. If you payback what you use on your credit card each month in full you do not get charged interest. Always pay you credit card bill on time and pay more than the minimum monthly due.

7. Obtaining a Credit Card Make a list of what you want out of credit card and what you plan to use it for Compare offers…use the Schumer Box to help list Pro’s and Con’s of each offer. Fill out an application (Online, in the Store, Mail)