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Credit Cards

Credit Cards. Miranda Parker, Pania Vang, Rachel Shultis, Melissa Strupp, & Krissy Mass. What is a credit card?.

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Credit Cards

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  1. Credit Cards Miranda Parker, Pania Vang, Rachel Shultis, Melissa Strupp, & Krissy Mass

  2. What is a credit card? A card issued by a bank or business that allows one to make purchases on credit, meaning purchases can be made without having the money available immediately, however, these purchases must be paid back over a period of time.

  3. Credit Cards Pros * Convenient * You don’t need to carry cash with you * Some cards come with perks: cashback, vacations, etc. * Useful in an emergency * Raises credit score (if used correctly)

  4. Credit Card Cons * Can result it debt * You may feel compelled to buy more * Interest rates are high There are late fees if the payments aren't paid on time *Credit card fraud is a possibility

  5. Interest Rates for Credit Cards and how they change. A credit card’s interest rate is the price you pay for borrowing money. Your credit card interest rate can increase when you've become more than 60 days delinquent on your payment. So after you've missed two consecutive payments, the credit card issue can exact the default rate. If you want to have a lower interest rate, then just make sure you pay in time monthly, or just don’t have a credit card all.

  6. How a business will entice one to open a card. A business will advertize that one will receive cash back, travel rewards, or money or percent off the first purchase.

  7. Cons Temptation- Department store card’s such as Macy's might tempt you to make unnecessary (or unaffordable) impulse buys. High Interest Rates- These cards rarely have reasonable interest rates (they are frequently over 20%). All your benefits will diminish quickly if you aren't going to pay them off in full each month. Hurt Your Credit Score- If you aren't using your card wisely your credit could deteriorate. If you are just starting out trying to build your credit though, these cards may be a good idea. Some credit lines on your report are better than none.

  8. Pros Easier Qualification. Department store cards are relatively easy to get for individuals with poor or minimal credit. This is beneficial for consumers who need to establish credit, rebuild, or improve credit history. Save Money on Initial Purchase. Not only will you save money, many stores offer 60- or 90-day grace periods after the first purchase. You might be able to soak up that, say, 10- 15 % discount, for the first few months of being signed. Store Specific Rewards Programs. In some cases, you which may be able to exchangereward cards for gift cards or a direct store credit. You'll be Privy to Members Only Specials. Being one of their card holders, you'll be notified of special sales dates, special promotions or other additional discounts on particular items before the general public is aware.

  9. What is a Credit Line? A credit line is the amount of money available for you to borrow. Instead of borrowing a specific amount of money and paying it back over time, the bank allows you to borrow any amount you need (up to your credit limit), whenever you need it.

  10. How Credit Lines are determined for individuals Credit lines are determined by banks looking at your credit score, which is a number that represents your entire credit history. The scoring system analyzes how you’ve repaid loans in the past and predicts your ability to pay back future loans Companies also look at your income

  11. 2 Non-Store Credit Cards -Chase Freedom • 0% Intro APR for 15 months on purchases and balance transfers, After the intro period, a variable APR of 13.99%, 18.99% or 22.99% based on your credit worthiness (credit score). • Grace period:You have 21 days after each billing cycle (time between issued statements) to make a payment. • FEES -

  12. Bank Americard Travel rewards credit card Interest rate: depends on credit history and a credit score of 750-850 Variable APR: of 15-22% depends on purchases and balance transfers Grace Period: 25 days after the close of each billing cycle Extra Perks:no annual fee earn 1.5 points for every$1 spent no limits on points use for flights, hotels, and other vacation expenses

  13. Minimum Payments * This is the smallest payment (usually between 1-5% of your debt) you can makes on a credit card without being penalized. Interest is also added to this payment.

  14. Paying it off

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