Page 16 2.6.3.E2 SampleCreditCardOffer1 InterestRatesandInterestCharges Annual Rate(APR)for Purchases 12.99%,13.99%or14.99%,introductoryAPRforoneyear,basedonyourcreditworthiness. Afterthat,yourAPRwillbe14.99%.ThisisavariablerateAPRthatwillvarywiththemarket basedontheprimerate. APRforBalance 15.99% Transfers APRforCash Advances 21.99% PenaltyAPRand 28.99% WhenitApplies ThisAPRmaybeappliedtoyouraccountifyou: 1. Makealatepayment; 2. Gooveryourcreditlimit; 3. Makeapaymentthatisreturned;or 4. Doanyoftheaboveonanotheraccountthatyouhavewithus. HowlongwillthePenaltyAPRapply?IfyourAPR sareincreasedforanyofthesereasons, thepenaltyaprwillapplyuntilyoumakesixconsecutiveminimumpaymentswhendue. HowtoAvoidPaying InterestonPurchases Yourduedateisatleast25daysafterthecloseofeachbillingcycle.Wewillnotchargeyou anyinterestonpurchasesifyoupayyourentirebalancebytheduedateeachmonth. MinimumInterest Ifyouarechargedinterest,thechargewillbenolessthan$1.50. Charge ForCreditCardTips fromthefederal Tolearnmoreaboutfactorstoconsiderwhenapplyingfororusingacreditcard,visitthe websiteofthefederalreserveboardathttp://www.federalreserve.gov/creditcard ReserveBoard Fees Setupand MaintenanceFees NOTICE:Someofthesesetupandmaintenancefeeswillbeassessedbeforeyoubeginusing yourcardandwillreducetheamountofcreditavailableinitially.forexample,ifyouare assignedtheminimumcreditlimitof$250,initialavailablecreditwillbeonlyabout$209. AnnualFee:$20 AccountSetupFee:$20(onetimefee) ParticipationFee:$12annually($1permonth) AdditionalCardFee:$5annually(ifapplicable) TransactionFees BalanceTransfer:Either$5or3%oftheamountofeachtransfer,whicheveris greater(maximumfee:$100) CashAdvance:Either$5or3%oftheamountofeachcashadvance,whicheveris greater ForeignTransaction:2%ofeachtransactioninU.S.dollars PenaltyFees LatePayment:$29ifbalanceislessthanorequalto$1000OR$35ifbalanceismore than$1000 Overthelimit:$29 ReturnedPayment:$35 *HowWeWillCalculateYourBalance:Weuseamethodcalled averagedailybalance(includingnewpurchases). *LossofIntroductoryAPRWemayendyourintroductoryAPRandapplythePenaltyAPRifyoubecomemorethan60 dayslateinpayingyourbill TakeChargeToday May2014 UnderstandingCreditCards FundedbyagrantfromTakeChargeAmerica,Inc.totheNortonSchoolofFamilyandConsumerSciencesTakeChargeAmericaInstituteatTheUniversityofArizona
Page 17 2.6.3.E3 Annual Rate(APR)for Purchases APRforBalance Transfers APRforCash Advances PenaltyAPRand WhenitApplies SampleCreditCardOffer2 InterestRatesandInterestCharges 14.99% ThisisavariablerateAPRthatwillvarywiththemarketbasedonthePrimeRate. 0%introductoryAPRforsixmonths.Afterthat,yourBalanceTransferAPRwillbe18.99% 24.99% 29.99% ThisAPRmaybeappliedtoyouraccountifyou: 1. Makealatepayment; 2. Gooveryourcreditlimit; 3. Makeapaymentthatisreturned;or 4. Doanyoftheaboveonanotheraccountthatyouhavewithus. HowlongwillthePenaltyAPRapply?IfyourAPR sareincreasedforanyofthesereasons, thepenaltyaprwillapplyuntilyoumakesixconsecutiveminimumpaymentswhendue. HowtoAvoidPaying Yourduedateisatleast25daysafterthecloseofeachbillingcycle.Wewillnotchargeyou InterestonPurchases anyinterestonpurchasesifyoupayyourentirebalancebytheduedateeachmonth. MinimumInterest Thereisnominimuminterestcharge. Charge ForCreditCardTips Tolearnmoreaboutfactorstoconsiderwhenapplyingfororusingacreditcard,visitthe fromthefederal websiteofthefederalreserveboardathttp://www.federalreserve.gov/creditcard ReserveBoard Fees Setupand NOTICE:Someofthesesetupandmaintenancefeeswillbeassessedbeforeyoubeginusing MaintenanceFees yourcardandwillreducetheamountofcredityouinitiallyhaveavailable.forexample,if youareassignedtheminimumcreditlimitof$250,initialavailablecreditwillbeonlyabout $209. AnnualFee:$0 AccountSetupFee:$20(onetimefee) ParticipationFee:$15annually AdditionalCardFee:$5annually(ifapplicable) TransactionFees BalanceTransfer:Either$25or5%oftheamountofeachtransfer,whicheveris greater(maximumfee:$100) CashAdvance:Either$25or5%oftheamountofeachcashadvance,whicheveris greater ForeignTransaction:3%ofeachtransactioninU.S.dollars PenaltyFees LatePayment:$30 Overthelimit:$30 ReturnedPayment:$30 *HowWeWillCalculateYourBalance:Weuseamethodcalled averagedailybalance(includingnewpurchases). *LossofIntroductoryAPRWemayendyourintroductoryAPRandapplythePenaltyAPRifyoubecomemorethan60 dayslateinpayingyourbill TakeChargeToday May2014 UnderstandingCreditCards FundedbyagrantfromTakeChargeAmerica,Inc.totheNortonSchoolofFamilyandConsumerSciencesTakeChargeAmericaInstituteatTheUniversityofArizona
Page 18 2.6.3.E4 Annual Rate(APR)for Purchases APRforBalance Transfers APRforCash Advances PenaltyAPRand WhenitApplies SampleCreditCardOffer3 InterestRatesandInterestCharges 11.99%,introductoryAPRforoneyear. Afterthat,yourAPRwillbe15.99%. 14.99% 20.99% 28.99% ThisAPRmaybeappliedtoyouraccountifyou: 1. Makealatepayment; 2. Gooveryourcreditlimit; 3. Makeapaymentthatisreturned;or 4. Doanyoftheaboveonanotheraccountthatyouhavewithus. HowlongwillthePenaltyAPRapply?IfyourAPR sareincreasedforanyofthesereasons, thepenaltyaprwillapplyuntilyoumakesixconsecutiveminimumpaymentswhendue. HowtoAvoidPaying Yourduedateisatleast25daysafterthecloseofeachbillingcycle.Wewillnotchargeyou InterestonPurchases anyinterestonpurchasesifyoupayyourentirebalancebytheduedateeachmonth. MinimumInterest Ifyouarechargedinterest,thechargewillbenolessthan$2.00. Charge ForCreditCardTips Tolearnmoreaboutfactorstoconsiderwhenapplyingfororusingacreditcard,visitthe fromthefederal websiteofthefederalreserveboardathttp://www.federalreserve.gov/creditcard ReserveBoard Fees Setupand NOTICE:Someofthesesetupandmaintenancefeeswillbeassessedbeforeyoubeginusing MaintenanceFees yourcardandwillreducetheamountofcredityouinitiallyhaveavailable.forexample,if youareassignedtheminimumcreditlimitof$250,initialavailablecreditwillbeonlyabout $209. AnnualFee:$15 AccountSetupFee:$10(onetimefee) AdditionalCardFee:$10annually(ifapplicable) TransactionFees BalanceTransfer:$0 CashAdvance:Either$10or3%oftheamountofeachcashadvance,whicheveris greater ForeignTransaction:3%ofeachtransactioninU.S.dollars PenaltyFees LatePayment:$35 Overthelimit:$35 ReturnedPayment:$35 *HowWeWillCalculateYourBalance:Weuseamethodcalled averagedailybalance(excludingnewpurchases). *LossofIntroductoryAPRWemayendyourintroductoryAPRandapplythePenaltyAPRifyoubecomemorethan60 dayslateinpayingyourbill TakeChargeToday May2014 UnderstandingCreditCards FundedbyagrantfromTakeChargeAmerica,Inc.totheNortonSchoolofFamilyandConsumerSciencesTakeChargeAmericaInstituteatTheUniversityofArizona
Page 25 2.6.3.A5 Comparison Shopping for a Credit Card 35 Total Points Possible Name Date Class Directions: Compare at least three sample credit card offers. Identify which credit card you would choose and why. (1 point each) Card 1 Card 2 Card 3 What is the Annual Rate (APR) for Purchases Is the APR for purchases a fixed rate APR or variable rate APR? Introductory APR What is the rate and how long does it last? What is the APR for Balance Transfers? What is the APR for Cash Advances? What is the Penalty APR? Is there a minimum interest charge? If so, how much? Set up and Maintenance Fees Transaction Fees Penalty Fees How is the balance calculated? Which credit card would you choose and why? (2 points) Take Charge Today May 2014 Understanding Credit Cards Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
Page 26 2.6.3.B1 Comparison Shopping for a Credit Card Essay 21 Total Points Possible Name Date Class Directions: Write a one page essay explaining why the credit card you choose is the best choice. Your essay should: Provide at least 3 reasons why you selected the card that you did Explain the decision making process used Identify characteristics of the card you must be careful about to use it responsibly Content: At least three reasons why the card was selected is provided The decision making process is described One or more characteristics of the card that the consumer must be aware of to use it responsibly are described Answer are thoughtful and reflective Writing Skills: Sentences are fluent and effective Very few errors in mechanics, punctuation and word choice Essay includes an introduction, body, and conclusion Effectiveness of Presentation: Clearly prepared Easily read and neatly assembled Minimum of one page, doublespaced with 12 font and 1 inch margins. Exemplary Satisfactory Unsatisfactory No Performance 9 7 6 4 3 1 0 6 5 4 3 2 1 0 6 5 4 3 2 1 0 Score Total Points Available 21 Take Charge Today May 2014 Understanding Credit Cards Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona