1. Unders tanding Your
Credit Card
Credit Unit
tC
ard
Take Charge of Your Finances
Cr edi

2. Something to think About
Twenty-one year old Jenny felt rich when she received her
first credit card during her junior year of college. She
charged $2,500, her credit limit, the first month. Every
month after that, she was careful about paying on time,
but only sent in the minimum monthly payment,
$50.00. With an interest rate of 19.8%, even though
she never charged another item, it will take her 8 years
and 9 months to pay off her account. When her
account has a zero balance, she will have paid a total of
$5,325.18. Therefore, she will have paid $2,825.18 in
interest.

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Credit
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CREDIT-
When goods, services or money is received in
exchange for a promise to pay a definite sum of
money at a future date
INTEREST
The price of -
money- when referring to credit,
interest is the charge for borrowing money

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Lender and Borrower
C
LENDER- BORROWER-
The person or organization The person or
who has the resources to organization that is
provide the individual with a receiving the money from
loan
the lender

5. Cr
edi t C
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ard
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Closed-end vs.
Open-end Credit
Open-end
Characteristics Closed-end credit
(revolving) credit
Credit extended in
Definition A one-time loan
advance
May be used for a variety
Purpose of loan Specified in application
of purposes

6. Cr
edi t C
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ard
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Closed-end vs.
Open-end Credit
Closed-end
Characteristics Open-end credit
credit
Varies- can be paid in one
Specified number of
Payments payment or a series of
equal payments
equal or unequal payments
Agreed upon during the May be increased for
Loan Amount
application process responsible consumers
Mortgage, automobile,
Examples Credit cards
education loans

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Credit Card
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What is a credit card?
Pre-approved credit which can be used for the purchase of goods
and services now and payment of them later
A credit cards credit limit varies based upon an
individual’s perceived creditworthiness
Credit limit is the Creditwor thiness is an
maximum dollar individuals ability and willingness
to pay the money back
amount loaned

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Credit Card
Interest
Interest is charged each month the
balance is not paid in full
Rate at which interest is
charged is referred to as:
Annual Percentage
Rate (APR)
The cost of credit expressed as
a yearly interest rate

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Minimum Payments
Cr
• Required to make at least a minimum payment each
month
– Usually only a small percentage (2.5-5%) of the total
balance due
• Cardholders who only make the minimum payment:
– Make slow progress paying off card balance
– Pay substantially more than what was initially charged to
the card

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Minimum Payments
Cr
Amount
Total
charged to Time to Total
Minimum amount
credit card APR pay off the amount
payment paid in
in one credit card paid
interest
purchase
$2,000 18% $50.00 62 months $1,077.25 $3,077.25
$500 12% $25.00 23 months $60.67 $560.67

11. ard
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Cr Advantages to using
Credit Cards
Advantages
Convenient payment tool Protection against fraud
Opportunity to establish a
Useful for emergencies positive credit history
Online shopping is safer than using a
Often required to hold a reservation debit card because of the Fair Credit
Billing Act protection
Able to purchase “big ticket” items Possibility of receiving bonuses, such
and spread out payments as frequent flyer miles or cash rebates

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Cr Disadvantages to using
Credit Cards
Disadvantages
Interest can be costly when
Responsible for lost/stolen cards
a balance is revolved
Additional penalty fees Applying for multiple accounts can
may apply lower your credit score
Tempting to overspend
Risk of identity theft

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Debit Cards
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• W hat is a debit card?
– A plastic card which looks like a credit card, but is
electronically connected to the cardholder’s bank
account
– Money is immediately withdrawn from the cardholders
checking account
What is the difference between a credit
card and a debit card?

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Credit History
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Credit cards can have a positive or negative
impact on an individuals credit history
Credit Report
A record of a consumer’s credit history that includes information about
credit card use as well as the use of other types of credit, such as auto
loans, student loans and mortgage loans
Credit Score
A number that summarizes an individual’s credit record and history. It is a
numeric “grade” of a consumer’s financial reliability

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Positive Credit
Card use
Helps develop
Proper credit positive credit Earn a high
history and credit
card use credit score
report
A high credit score gives the consumer the opportunity
to have lower interest rates on loans, the privilege to
use different forms of credit, and an easier approval
process for future credit

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Positive Credit
Card Use
• Examples of positive credit card behaviors:
– Paying credit card balances in full every month
– Paying credit card bills on time
– Applying for only credit cards that are needed
– Keeping track of all charges by keeping receipts and
using a check register
– Checking the monthly credit card statement for errors

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Negative Credit
Card Use
Develops
Improper negative credit Lower credit
history and credit
credit card use score
report
Consumers with low credit scores have difficulty
getting loans, difficulty renting apartments, pay
higher interest rates, pay higher insurance rates, and
have difficulty obtaining a job

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Negative Credit
Card use
• Examples of negative credit card behaviors:
– Making late credit card payments
– Paying only the minimum payment
– Exceeding the card’s credit limit (usually triggers a
penalty fee)
– Charging items that can’t be paid off immediately
– Owning too many credit cards

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NO Credit
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• If an individual has not used credit, they will not
have any information in their credit report
• Not having a credit report can cause an individual
to be denied credit

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Credit Card Offers
Cr
Credit card issuers are required to disclose
the terms and fees of credit cards in an
easy to read box format
This is called the Schumer box

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Interest Rates and Interest Charges
Annu al Per centage 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
Rate (AP R) for After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market
Pu rchases based on the Prime Rate.
AP R for Balance 15.99%
Trans fers •This APR will vary with the market based on the Prime Rate
AP R for Cash 21.99%
Adv ances •This APR will vary with the market based on the Prime Rate
Penalt y AP R and 28.99%
When it Applies This APR may be applied to your account if you:
1.Make a late payment;
2.Go over your credit limit;
3.Make a payment that is returned; or
Annual Percentage Rate
4.Do any of the above on another account that you have with us.
H ow long will the Penalty APR apply? If your APR’s are increased for any of these
reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
(APR) for Purchases H ow to Av oid
Paying I nter est on
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any
interest on purchases if you pay your entire balance by the due date each month.
This section discloses the Pu rchases
Minimum I nter est
Charge
If you are charged interest, the charge will be no less than $1.50.
interest paid for purchases on For Credit Card
Tips fr om the
Feder al Res erv e
To learn more about factors to consider when applying for or using a credit card, visit the website
of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
the card. Multiple interest rates Boar d
Set -up and
Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your
may be listed here, because the Maintenance Fees card and will reduce the amount of credit you initially have available. For example, if you are
assigned the minimum credit limit of $250, initial available credit will be only about $209.
•Annual Fee: $20
final interest rate may depend •Account Set -up F ee: $20 (one-time fee)
•P articipation Fee: $12 annually ($1 per month)
•Addit ional Card Fee: $5 annually (if applicable)
on the creditworthiness of the Trans action Fees • Balance Tr ans fer : Either $5 or 3% of the amount of each transfer, whichever is
greater (maximum fee: $100)
applicant •
•
Cas h Advance: Either $5 or 3% of the amount of each cash advance, whichever is
greater
Foreign Tr ans action: 2% of each transaction in U.S. dollars
Penalt y Fees • L at e Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is
more than $1000
• Ov er- the- limit: $29
• R etur ned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60
days late in paying your bill

22. Introductory Rate Interest Rates and Interest Charges
If the credit card has an
Annu al Per centage 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
Rate (AP R) for After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market
Pu rchases based on the Prime Rate.
introductory rate it will be AP R for Balance
Trans fers
15.99%
•This APR will vary with the market based on the Prime Rate
shown in this section, which is
AP R for Cash 21.99%
Adv ances •This APR will vary with the market based on the Prime Rate
Penalt y AP R and 28.99%
the APR charged during the
When it Applies This APR may be applied to your account if you:
1.Make a late payment;
2.Go over your credit limit;
3.Make a payment that is returned; or
credit card's introductory period 4.Do any of the above on another account that you have with us.
H ow long will the Penalty APR apply? If your APR’s are increased for any of these
reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
after a credit card account is H ow to Av oid Your due date is at least 25 days after the close of each billing cycle. We will not charge you any
opened. The card will have a
Paying I nter est on interest on purchases if you pay your entire balance by the due date each month.
Pu rchases
Minimum I nter est If you are charged interest, the charge will be no less than $1.50.
different APR after the
Charge
For Credit Card To learn more about factors to consider when applying for or using a credit card, visit the website
Tips fr om the of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
introductory period ends Feder al Res erv e
Boar d
Fees
Set -up and NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your
What is the introductory rate for Maintenance Fees card and will reduce the amount of credit you initially have available. For example, if you are
assigned the minimum credit limit of $250, initial available credit will be only about $209.
this credit card offer? •Annual Fee: $20
•Account Set -up F ee: $20 (one-time fee)
•P articipation Fee: $12 annually ($1 per month)
The introductory rate depends •Addit ional Card Fee: $5 annually (if applicable)
on the creditworthiness of the Trans action Fees • Balance Tr ans fer : Either $5 or 3% of the amount of each transfer, whichever is
greater (maximum fee: $100)
applicant, but it will be • Cas h Advance: Either $5 or 3% of the amount of each cash advance, whichever is
greater
•
12.99%, 13.99%, or 14.99% Penalt y Fees •
Foreign Tr ans action: 2% of each transaction in U.S. dollars
L at e Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is
more than $1000
• Ov er- the- limit: $29
• R etur ned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60
days late in paying your bill

23. Variable-rate APR
Some cards will have a Interest Rates and Interest Charges
Annu al Per centage 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
variable-rate APR , which is Rate (AP R) for
Pu rchases
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market
based on the Prime Rate.
an APR that may change AP R for Balance
Trans fers
15.99%
•This APR will vary with the market based on the Prime Rate
AP R for Cash 21.99%
depending on other factors, such Adv ances
Penalt y AP R and
•This APR will vary with the market based on the Prime Rate
28.99%
When it Applies This APR may be applied to your account if you:
as the prime rate. The prime 1.Make a late payment;
2.Go over your credit limit;
3.Make a payment that is returned; or
rate is an index that represents 4.Do any of the above on another account that you have with us.
H ow long will the Penalty APR apply? If your APR’s are increased for any of these
reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
the interest rate most banks H ow to Av oid Your due date is at least 25 days after the close of each billing cycle. We will not charge you any
Paying I nter est on interest on purchases if you pay your entire balance by the due date each month.
charge their most credit-worthy Pu rchases
Minimum I nter est If you are charged interest, the charge will be no less than $1.50.
Charge
customers For Credit Card
Tips fr om the
To learn more about factors to consider when applying for or using a credit card, visit the website
of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
Feder al Res erv e
Boar d
What is the APR for Purchases for Set -up and
Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your
this credit card offer? Maintenance Fees card and will reduce the amount of credit you initially have available. For example, if you are
assigned the minimum credit limit of $250, initial available credit will be only about $209.
•Annual Fee: $20
14.99% •Account Set -up F ee: $20 (one-time fee)
•P articipation Fee: $12 annually ($1 per month)
•Addit ional Card Fee: $5 annually (if applicable)
Is this a variable-rate APR Trans action Fees • Balance Tr ans fer : Either $5 or 3% of the amount of each transfer, whichever is
greater (maximum fee: $100)
or a fixed-rate APR? • Cas h Advance: Either $5 or 3% of the amount of each cash advance, whichever is
greater
• Foreign Tr ans action: 2% of each transaction in U.S. dollars
Variable-rate APR Penalt y Fees • L at e Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is
more than $1000
• Ov er- the- limit: $29
• R etur ned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60
days late in paying your bill

24. Interest Rates and Interest Charges
Annu al Per centage 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
Rate (AP R) for After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market
Pu rchases based on the Prime Rate.
APR for Balance Transfers AP R for Balance 15.99%
•This APR will vary with the market based on the Prime Rate
This section discloses the interest
Trans fers
AP R for Cash 21.99%
Adv ances •This APR will vary with the market based on the Prime Rate
paid for balance transfers ,
Penalt y AP R and 28.99%
When it Applies This APR may be applied to your account if you:
1.Make a late payment;
2.Go over your credit limit;
which is the act of transferring 3.Make a payment that is returned; or
4.Do any of the above on another account that you have with us.
H ow long will the Penalty APR apply? If your APR’s are increased for any of these
debt from one credit card account reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
to another. Balance transfer fees
H ow to Av oid Your due date is at least 25 days after the close of each billing cycle. We will not charge you any
Paying I nter est on interest on purchases if you pay your entire balance by the due date each month.
Pu rchases
may apply, even if the balance
Minimum I nter est If you are charged interest, the charge will be no less than $1.50.
Charge
For Credit Card To learn more about factors to consider when applying for or using a credit card, visit the website
transfer APR is 0% Tips fr om the
Feder al Res erv e
Boar d
of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
Fees
Set -up and NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your
Maintenance Fees card and will reduce the amount of credit you initially have available. For example, if you are
What is the APR for balance assigned the minimum credit limit of $250, initial available credit will be only about $209.
•Annual Fee: $20
•Account Set -up F ee: $20 (one-time fee)
transfers for this credit card offer? •P articipation Fee: $12 annually ($1 per month)
•Addit ional Card Fee: $5 annually (if applicable)
15.99% Trans action Fees • Balance Tr ans fer : Either $5 or 3% of the amount of each transfer, whichever is
greater (maximum fee: $100)
• Cas h Advance: Either $5 or 3% of the amount of each cash advance, whichever is
greater
• Foreign Tr ans action: 2% of each transaction in U.S. dollars
Penalt y Fees • L at e Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is
more than $1000
• Ov er- the- limit: $29
• R etur ned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60
days late in paying your bill

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Interest Rates and Interest Charges
Annu al Per centage 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
Rate (AP R) for After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market
Pu rchases based on the Prime Rate.
AP R for Balance 15.99%
Trans fers •This APR will vary with the market based on the Prime Rate
AP R for Cash 21.99%
Adv ances •This APR will vary with the market based on the Prime Rate
Penalt y AP R and 28.99%
When it Applies This APR may be applied to your account if you:
1.Make a late payment;
2.Go over your credit limit;
APR for Cash Advances
3.Make a payment that is returned; or
4.Do any of the above on another account that you have with us.
H ow long will the Penalty APR apply? If your APR’s are increased for any of these
reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
This section discloses the interest H ow to Av oid Your due date is at least 25 days after the close of each billing cycle. We will not charge you any
paid for cash advances, such as Paying I nter est on interest on purchases if you pay your entire balance by the due date each month.
Pu rchases
Minimum I nter est If you are charged interest, the charge will be no less than $1.50.
withdrawing cash from an ATM Charge
For Credit Card To learn more about factors to consider when applying for or using a credit card, visit the website
Tips fr om the of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
using a credit card. Cash advance Feder al Res erv e
Boar d
Fees
fees may also apply Set -up and
Maintenance Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your
card and will reduce the amount of credit you initially have available. For example, if you are
assigned the minimum credit limit of $250, initial available credit will be only about $209.
•Annual Fee: $20
•Account Set -up F ee: $20 (one-time fee)
•P articipation Fee: $12 annually ($1 per month)
•Addit ional Card Fee: $5 annually (if applicable)
What is the APR for cash advances
Trans action Fees • Balance Tr ans fer : Either $5 or 3% of the amount of each transfer, whichever is
for this credit card offer? •
greater (maximum fee: $100)
Cas h Advance: Either $5 or 3% of the amount of each cash advance, whichever is
greater
21.99% Penalt y Fees
•
•
Foreign Tr ans action: 2% of each transaction in U.S. dollars
L at e Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is
more than $1000
• Ov er- the- limit: $29
• R etur ned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60
days late in paying your bill

26. Penalty APR and Annu al Per centage
Interest Rates and Interest Charges
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
When it Applies
Rate (AP R) for After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market
Pu rchases based on the Prime Rate.
This section discloses the penalty
AP R for Balance 15.99%
Trans fers •This APR will vary with the market based on the Prime Rate
AP R for Cash 21.99%
•This APR will vary with the market based on the Prime Rate
APR, as well as the penalty terms
Adv ances
Penalt y AP R and 28.99%
When it Applies This APR may be applied to your account if you:
1.Make a late payment;
that trigger the penalty APR to 2.Go over your credit limit;
3.Make a payment that is returned; or
4.Do any of the above on another account that you have with us.
take effect H ow long will the Penalty APR apply? If your APR’s are increased for any of these
reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
H ow to Av oid Your due date is at least 25 days after the close of each billing cycle. We will not charge you any
•Penalty APR is the interest Paying I nter est on
Pu rchases
Minimum I nter est
interest on purchases if you pay your entire balance by the due date each month.
If you are charged interest, the charge will be no less than $1.50.
rate charged on new transactions
Charge
For Credit Card To learn more about factors to consider when applying for or using a credit card, visit the website
Tips fr om the of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
if the penalty terms in the credit Feder al Res erv e
Boar d
Fees
card contract are triggered Set -up and
Maintenance Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your
card and will reduce the amount of credit you initially have available. For example, if you are
assigned the minimum credit limit of $250, initial available credit will be only about $209.
•Annual Fee: $20
•Account Set -up F ee: $20 (one-time fee)
•P articipation Fee: $12 annually ($1 per month)
•Addit ional Card Fee: $5 annually (if applicable)
What is the Penalty APR for this Trans action Fees • Balance Tr ans fer : Either $5 or 3% of the amount of each transfer, whichever is
greater (maximum fee: $100)
credit card offer? • Cas h Advance: Either $5 or 3% of the amount of each cash advance, whichever is
greater
• Foreign Tr ans action: 2% of each transaction in U.S. dollars
21.99% Penalt y Fees • L at e Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is
more than $1000
• Ov er- the- limit: $29
• R etur ned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60
days late in paying your bill

27. ar d
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Interest Rates and Interest Charges
Annu al Per centage 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
Rate (AP R) for After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market
Pu rchases based on the Prime Rate.
AP R for Balance 15.99%
Trans fers •This APR will vary with the market based on the Prime Rate
AP R for Cash 21.99%
Adv ances •This APR will vary with the market based on the Prime Rate
Penalt y AP R and 28.99%
When it Applies This APR may be applied to your account if you:
1.Make a late payment;
2.Go over your credit limit;
3.Make a payment that is returned; or
How To Avoid Paying 4.Do any of the above on another account that you have with us.
H ow long will the Penalty APR apply? If your APR’s are increased for any of these
reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
Interest on Purchases H ow to Av oid
Paying I nter est on
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any
interest on purchases if you pay your entire balance by the due date each month.
This section explains how you Pu rchases
Minimum I nter est
Charge
If you are charged interest, the charge will be no less than $1.50.
can avoid interest charges on a For Credit Card
Tips fr om the
Feder al Res erv e
To learn more about factors to consider when applying for or using a credit card, visit the website
of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
credit card Boar d
Fees
Set -up and NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your
Maintenance Fees card and will reduce the amount of credit you initially have available. For example, if you are
assigned the minimum credit limit of $250, initial available credit will be only about $209.
How can a cardholder avoid paying •Annual Fee: $20
•Account Set -up F ee: $20 (one-time fee)
interest on a credit card? •P articipation Fee: $12 annually ($1 per month)
•Addit ional Card Fee: $5 annually (if applicable)
By paying credit card bills Trans action Fees • Balance Tr ans fer : Either $5 or 3% of the amount of each transfer, whichever is
greater (maximum fee: $100)
• Cas h Advance: Either $5 or 3% of the amount of each cash advance, whichever is
in full by the due date •
greater
Foreign Tr ans action: 2% of each transaction in U.S. dollars
Penalt y Fees • L at e Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is
more than $1000
• Ov er- the- limit: $29
• R etur ned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60
days late in paying your bill

28. ar d
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Interest Rates and Interest Charges
Annu al Per centage 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
Rate (AP R) for After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market
Pu rchases based on the Prime Rate.
AP R for Balance 15.99%
Trans fers •This APR will vary with the market based on the Prime Rate
AP R for Cash 21.99%
Adv ances •This APR will vary with the market based on the Prime Rate
Penalt y AP R and 28.99%
Minimum Interest When it Applies This APR may be applied to your account if you:
1.Make a late payment;
2.Go over your credit limit;
Charge 3.Make a payment that is returned; or
4.Do any of the above on another account that you have with us.
H ow long will the Penalty APR apply? If your APR’s are increased for any of these
Credit card companies often
reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
H ow to Av oid Your due date is at least 25 days after the close of each billing cycle. We will not charge you any
have a minimum interest Paying I nter est on
Pu rchases
Minimum I nter est
interest on purchases if you pay your entire balance by the due date each month.
If you are charged interest, the charge will be no less than $1.50.
amount. These charges Charge
For Credit Card
Tips fr om the
To learn more about factors to consider when applying for or using a credit card, visit the website
of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
typically range from $0.50 to Feder al Res erv e
Boar d
Fees
$2 per month and are Set -up and
Maintenance Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your
card and will reduce the amount of credit you initially have available. For example, if you are
assigned the minimum credit limit of $250, initial available credit will be only about $209.
disclosed in this section of the •Annual Fee: $20
•Account Set -up F ee: $20 (one-time fee)
•P articipation Fee: $12 annually ($1 per month)
credit card offer •Addit ional Card Fee: $5 annually (if applicable)
Trans action Fees • Balance Tr ans fer : Either $5 or 3% of the amount of each transfer, whichever is
greater (maximum fee: $100)
• Cas h Advance: Either $5 or 3% of the amount of each cash advance, whichever is
greater
• Foreign Tr ans action: 2% of each transaction in U.S. dollars
What is the minimum interest charge Penalt y Fees • L at e Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is
more than $1000
for this credit card? •
•
Ov er- the- limit: $29
R etur ned Payment: $35
$1.50 * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60
days late in paying your bill

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Interest Rates and Interest Charges
Annu al Per centage 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
Rate (AP R) for After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market
Pu rchases based on the Prime Rate.
AP R for Balance 15.99%
Trans fers •This APR will vary with the market based on the Prime Rate
AP R for Cash 21.99%
Adv ances •This APR will vary with the market based on the Prime Rate
Penalt y AP R and 28.99%
When it Applies This APR may be applied to your account if you:
1.Make a late payment;
2.Go over your credit limit;
3.Make a payment that is returned; or
For Credit Card Tips 4.Do any of the above on another account that you have with us.
H ow long will the Penalty APR apply? If your APR’s are increased for any of these
reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
from the Federal Reserve H ow to Av oid Your due date is at least 25 days after the close of each billing cycle. We will not charge you any
Paying I nter est on interest on purchases if you pay your entire balance by the due date each month.
Board Pu rchases
Minimum I nter est If you are charged interest, the charge will be no less than $1.50.
Charge
This section directs For Credit Card
Tips fr om the
To learn more about factors to consider when applying for or using a credit card, visit the website
of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
Feder al Res erv e
consumers to the Federal Boar d
Fees
Reserve website to obtain
Set -up and NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your
Maintenance Fees card and will reduce the amount of credit you initially have available. For example, if you are
assigned the minimum credit limit of $250, initial available credit will be only about $209.
•Annual Fee: $20
more information about credit •Account Set -up F ee: $20 (one-time fee)
•P articipation Fee: $12 annually ($1 per month)
•Addit ional Card Fee: $5 annually (if applicable)
cards Trans action Fees • Balance Tr ans fer : Either $5 or 3% of the amount of each transfer, whichever is
greater (maximum fee: $100)
• Cas h Advance: Either $5 or 3% of the amount of each cash advance, whichever is
greater
• Foreign Tr ans action: 2% of each transaction in U.S. dollars
Penalt y Fees • L at e Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is
more than $1000
• Ov er- the- limit: $29
• R etur ned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60
days late in paying your bill

30. Set-up and Maintenance
Fees Annu al Per centage
Rate (AP R) for
Interest Rates and Interest Charges
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market
This section discloses any set- Pu rchases
AP R for Balance
based on the Prime Rate.
15.99%
up and maintenance fees for Trans fers
AP R for Cash
Adv ances
•This APR will vary with the market based on the Prime Rate
21.99%
•This APR will vary with the market based on the Prime Rate
the card, which can include Penalt y AP R and
When it Applies
28.99%
This APR may be applied to your account if you:
1.Make a late payment;
annual fees, account set-up 2.Go over your credit limit;
3.Make a payment that is returned; or
4.Do any of the above on another account that you have with us.
fees, participation fees, and H ow long will the Penalty APR apply? If your APR’s are increased for any of these
reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
additional card fees H ow to Av oid
Paying I nter est on
Pu rchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any
interest on purchases if you pay your entire balance by the due date each month.
Minimum I nter est If you are charged interest, the charge will be no less than $1.50.
Charge
•Annual fee is a yearly fee For Credit Card
Tips fr om the
To learn more about factors to consider when applying for or using a credit card, visit the website
of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
Feder al Res erv e
that may be charged for Boar d
Fees
having a credit card
Set -up and NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your
Maintenance Fees card and will reduce the amount of credit you initially have available. For example, if you are
assigned the minimum credit limit of $250, initial available credit will be only about $209.
•Annual Fee: $20
•Account Set -up F ee: $20 (one-time fee)
•P articipation Fee: $12 annually ($1 per month)
•Addit ional Card Fee: $5 annually (if applicable)
What is the annual fee Trans action Fees • Balance Tr ans fer : Either $5 or 3% of the amount of each transfer, whichever is
for this credit card? •
greater (maximum fee: $100)
Cas h Advance: Either $5 or 3% of the amount of each cash advance, whichever is
greater
• Foreign Tr ans action: 2% of each transaction in U.S. dollars
$20 Penalt y Fees • L at e Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is
more than $1000
• Ov er- the- limit: $29
• R etur ned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60
days late in paying your bill

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Interest Rates and Interest Charges
Annu al Per centage 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
Rate (AP R) for After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market
Pu rchases based on the Prime Rate.
AP R for Balance 15.99%
Trans fers •This APR will vary with the market based on the Prime Rate
AP R for Cash 21.99%
Adv ances •This APR will vary with the market based on the Prime Rate
Penalt y AP R and 28.99%
Transcation Fees
When it Applies This APR may be applied to your account if you:
1.Make a late payment;
2.Go over your credit limit;
3.Make a payment that is returned; or
This section discloses any 4.Do any of the above on another account that you have with us.
H ow long will the Penalty APR apply? If your APR’s are increased for any of these
reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
transaction fees for the card, H ow to Av oid Your due date is at least 25 days after the close of each billing cycle. We will not charge you any
which can include balance
Paying I nter est on interest on purchases if you pay your entire balance by the due date each month.
Pu rchases
Minimum I nter est If you are charged interest, the charge will be no less than $1.50.
transfer fees, cash advance
Charge
For Credit Card To learn more about factors to consider when applying for or using a credit card, visit the website
Tips fr om the of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
fees, and foreign transaction
Feder al Res erv e
Boar d
Fees
fees Set -up and
Maintenance Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your
card and will reduce the amount of credit you initially have available. For example, if you are
assigned the minimum credit limit of $250, initial available credit will be only about $209.
•Annual Fee: $20
What is the fee for cash •Account Set -up F ee: $20 (one-time fee)
•P articipation Fee: $12 annually ($1 per month)
•Addit ional Card Fee: $5 annually (if applicable)
advances for this card?
Trans action Fees • Balance Tr ans fer : Either $5 or 3% of the amount of each transfer, whichever is
$5 or 3% of the •
greater (maximum fee: $100)
Cas h Advance: Either $5 or 3% of the amount of each cash advance, whichever is
amount of each cash •
greater
Foreign Tr ans action: 2% of each transaction in U.S. dollars
Penalt y Fees • L at e Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is
advance (whichever is •
more than $1000
Ov er- the- limit: $29
greater) • R etur ned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60
days late in paying your bill

32. Penalty Fees
This section discloses the Annu al Per centage
Interest Rates and Interest Charges
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
penalty fees for the card, Rate (AP R) for
Pu rchases
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market
based on the Prime Rate.
which can include late- AP R for Balance
Trans fers
AP R for Cash
15.99%
•This APR will vary with the market based on the Prime Rate
21.99%
payment, over-the-limit, and Adv ances
Penalt y AP R and
When it Applies
•This APR will vary with the market based on the Prime Rate
28.99%
This APR may be applied to your account if you:
returned payment fees 1.Make a late payment;
2.Go over your credit limit;
3.Make a payment that is returned; or
4.Do any of the above on another account that you have with us.
•Late payment fee is
H ow long will the Penalty APR apply? If your APR’s are increased for any of these
reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
charged when a cardholder H ow to Av oid
Paying I nter est on
Pu rchases
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any
interest on purchases if you pay your entire balance by the due date each month.
does not make the minimum Minimum I nter est
Charge
For Credit Card
If you are charged interest, the charge will be no less than $1.50.
To learn more about factors to consider when applying for or using a credit card, visit the website
monthly payment by the due Tips fr om the
Feder al Res erv e
Boar d
of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
date Set -up and
Maintenance Fees
Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your
card and will reduce the amount of credit you initially have available. For example, if you are
•Over-the-limit fee is assigned the minimum credit limit of $250, initial available credit will be only about $209.
•Annual Fee: $20
•Account Set -up F ee: $20 (one-time fee)
charged if the account balance •P articipation Fee: $12 annually ($1 per month)
•Addit ional Card Fee: $5 annually (if applicable)
goes over the set credit limit Trans action Fees
•
• Balance Tr ans fer : Either $5 or 3% of the amount of each transfer, whichever is
greater (maximum fee: $100)
Cas h Advance: Either $5 or 3% of the amount of each cash advance, whichever is
greater
• Foreign Tr ans action: 2% of each transaction in U.S. dollars
Penalt y Fees • L at e Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is
Does this card have an •
more than $1000
Ov er- the- limit: $29
• R etur ned Payment: $35
over-the limit fee? * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60
Yes, the over-the-limit fee is days late in paying your bill

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Interest Rates and Interest Charges
Annu al Per centage 12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
Rate (AP R) for After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market
Pu rchases based on the Prime Rate.
AP R for Balance 15.99%
Trans fers •This APR will vary with the market based on the Prime Rate
AP R for Cash 21.99%
Adv ances •This APR will vary with the market based on the Prime Rate
Penalt y AP R and 28.99%
How we calculate your
When it Applies This APR may be applied to your account if you:
1.Make a late payment;
2.Go over your credit limit;
3.Make a payment that is returned; or
balance 4.Do any of the above on another account that you have with us.
H ow long will the Penalty APR apply? If your APR’s are increased for any of these
reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
Credit card companies can use H ow to Av oid Your due date is at least 25 days after the close of each billing cycle. We will not charge you any
one of several methods to
Paying I nter est on interest on purchases if you pay your entire balance by the due date each month.
Pu rchases
Minimum I nter est If you are charged interest, the charge will be no less than $1.50.
calculate the outstanding
Charge
For Credit Card To learn more about factors to consider when applying for or using a credit card, visit the website
Tips fr om the of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
balance on a credit card. The Feder al Res erv e
Boar d
Fees
method used is disclosed in Set -up and
Maintenance Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your
card and will reduce the amount of credit you initially have available. For example, if you are
assigned the minimum credit limit of $250, initial available credit will be only about $209.
this section •Annual Fee: $20
•Account Set -up F ee: $20 (one-time fee)
•P articipation Fee: $12 annually ($1 per month)
•Addit ional Card Fee: $5 annually (if applicable)
Trans action Fees • Balance Tr ans fer : Either $5 or 3% of the amount of each transfer, whichever is
greater (maximum fee: $100)
What method is used to calculate the • Cas h Advance: Either $5 or 3% of the amount of each cash advance, whichever is
greater
• Foreign Tr ans action: 2% of each transaction in U.S. dollars
balance on this card? Penalt y Fees • L at e Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is
more than $1000
Average daily balance •
•
Ov er- the- limit: $29
R etur ned Payment: $35
(including new purchases) * How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60
days late in paying your bill

34. Interest Rates and Interest Charges
Loss of Introductory Annu al Per centage
Rate (AP R) for
Pu rchases
12.99%, 13.99% or 14.99%, introductory APR for one year, based on your creditworthiness.
After that, your APR will be 14.99%. This is a variable-rate APR that will vary with the market
based on the Prime Rate.
APR AP R for Balance
Trans fers
15.99%
•This APR will vary with the market based on the Prime Rate
If the card has an introductory AP R for Cash
Adv ances
Penalt y AP R and
21.99%
•This APR will vary with the market based on the Prime Rate
28.99%
rate, this area will list how the When it Applies This APR may be applied to your account if you:
1.Make a late payment;
2.Go over your credit limit;
lower introductory rate can be
3.Make a payment that is returned; or
4.Do any of the above on another account that you have with us.
H ow long will the Penalty APR apply? If your APR’s are increased for any of these
reasons, the Penalty APR will apply until you make six consecutive minimum payments when due.
lost H ow to Av oid Your due date is at least 25 days after the close of each billing cycle. We will not charge you any
Paying I nter est on interest on purchases if you pay your entire balance by the due date each month.
Pu rchases
How can the introductory APR be Minimum I nter est
Charge
If you are charged interest, the charge will be no less than $1.50.
For Credit Card To learn more about factors to consider when applying for or using a credit card, visit the website
lost on this card? Tips fr om the
Feder al Res erv e
of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
Boar d
If the cardholder is more Set -up and
Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your
than 60 days late in paying Maintenance Fees card and will reduce the amount of credit you initially have available. For example, if you are
assigned the minimum credit limit of $250, initial available credit will be only about $209.
•Annual Fee: $20
the bill •Account Set -up F ee: $20 (one-time fee)
What APR will the cardholder •P articipation Fee: $12 annually ($1 per month)
•Addit ional Card Fee: $5 annually (if applicable)
be charged if the introductory Trans action Fees • Balance Tr ans fer : Either $5 or 3% of the amount of each transfer, whichever is
greater (maximum fee: $100)
rate is lost? • Cas h Advance: Either $5 or 3% of the amount of each cash advance, whichever is
greater
• Foreign Tr ans action: 2% of each transaction in U.S. dollars
The Penalty APR of Penalt y Fees • L at e Payment: $29 if balance is less than or equal to $1000 OR $35 if balance is
more than $1000
• Ov er- the- limit: $29
28.99% • R etur ned Payment: $35
* How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).”
* Loss of Introductory APR- We may end your introductory APR and apply the Penalty APR if you become more than 60
days late in paying your bill

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Credit Card Benefits
C
• Research benefits that may be received from the card
– Cash rebates
– Warranties for items purchased with the card
– Travel accident insurance
– Frequent flyer miles
• Make sure to know all terms and conditions of card
benefits
• Cards that offer benefits may charge fees or higher
interest rates

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Receiving a
Credit Card
1. Compare credit card offers and determine which
card to apply for
2. Complete a credit application
– A form requesting information about a person’s ability
to repay and the applicant’s age
– Can be completed through the mail, the internet or
over the phone

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Receiving a
Credit Card
3. Lenders conduct a credit investigation
– A comparison of information on credit application to
information on a credit report
4. Applicants may or may not be approved for the card
they apply for
– Approval depends on the applicant's credit history

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Pre-Approved Credit
Card Applications
• Credit card companies send pre-approved credit
card applications in the mail
– If an individual is pre-approved for that particular
card, they have passed the initial credit check
Let’s do some comparison shopping…

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Credit Card
Statements
• Credit card statements outline important
information about the card
• The 2009 CARD Act required credit card
companies to include specific information about a
card account in the statement
Andrew’s Credit Card Statement
Please help Andrew interpret his credit card statement.