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Credit Card Basics Project
Credit Card
How could you use your Card?
You can use your card if you decide to not always pay your bills in full right away. The card has no annual fee and offers a longer grace period. Also a card can sometimes carry a lower interest rate
Types of card
Secured Cards - this requires a security deposit. With a higher deposit comes along with a higher credit limit. These kinds of cards are usally offered to who have limited credit records. Regular Cards - These do not require security deposits but have limited feautres to go along with it. Premium cards - these cards offer higher credit limits and also provides some extra features like travel insurance and emergency services The type of card that might be appropriate for someone around their teen years would be the Secured Cards. Since these cards are for people who have limited credit records usually teens follow under that category.
Credit Limits
A maximum total amount for purchases, balance transfers, fees, and finance charges. You can charge on your credit card. If you just so happen to go over the given limit, you would have to pay an “over-the-credit-limit fee.”
Credit Card Information
A good portion of the credit card information can be found on the bank website or actually at the bank itself. The information that most be provided: Annual percentage rate (APR) for purchases, other APRS, Variable-rate information, Grace period for repayment of balances for purchases, Annual fees, and the Minimum finance charge
Finance Charges & Fees
Tips & Info. for Finance Charges
You can calculate the finance charges in several different ways: Over one biling cycle or two; Using the adjusted balance, the average daily balace, or the previous balance; including or excluding new purchases in the balances. The minimum finance charge usually applies only when you must pay a finance charge. When you carry over a balance from one billing cycle to the next.
Fees & Credit Cards
- Annual Fee - Cash Advance Fee - Balance - Transfer Fee - Late - Payment Fee - Over-the-credit-limit Fee - Set-Up Fee - Return-item Fee - Other Fees
Liability (Stolen & Lost Cards)
You do not have to pay more than $50 of those charges. If lost or stolen report it immediately to your credit card company. Call the toll-free number listed on your monthly statement. The company will cancel the card so that new purchases cannot be made with it.
Cash Advances
A cash advance is when some credit cards let you borrrow cash in addition to making purchases on credit. Some credit cards let you use ATM's to get a cash advance. Also with an APR and fees have cash advances.
Fixed vs. Variable APR
Some credit cards are ''fixed rate''. Which means the APR doesn't change, or doesn't frequently change. But before the fixed APR increases the company must tell you before it happens. Some other credit cards are ''variable rates''. The APR changes from time to time. The rate is usually tied to another interest rate, like a prime rate or the Treasury bill rate. Even with both rates they can each change over time. So either rate can be beneficial.
What are the APRs?
APR - annual percentage rate - is the interest rate you will pay if you carry over a balance, take out a cash advance, or transfer a balance from another card. The APR states the interest rate as a yearly rate
