1. Credit Cards
MARISSA DORIA
BLOCK 3

2. Credit
 Money available for a client to borrow

3. Finance Charge
 Finance Charge—Total dollar cost of credit, including
interest and all other charges
 Credit Companies may charge a finance charge to
make you aware of the total cost of credit

4. Interest Rate
 Interest rates credit card companies usually charge is
12%.
 It is dangerous to pay the minimal amount each
month because you are less likely to get your bill
payed

5. Common Credit Card Companies
 Visa
 Discover
 American Express
 MasterCard

6. Credit Rating
 It is important to know your credit rating so you
know when you need to borrow money or when you
need to make a major purpose.
 Good Score: High 700’s
 Bad Score: 499 and below
 You get your credit rating score checked when you
are trying to get a loan and/or applying for a job

7. Benefits of using a Credit Card
 Convenience
 Immediate Possession
 Savings
 Credit Rating
 Useful for Emergencies

8. Problems concerned with Credit
 Overbuying
 Careless Buying
 Higher Prices
 Overuse of Credit

9. Calculating Interest
 Interest = Principle x Rate x Time

10. Credit Application
 Form on which you provide information needed by a
lender to make a decision about granting credit
 You often fill one out when you need a loan or are
applying for job

11. Truth in Lending Law and Fair Credit Billing Act
 First of a series of credit protection laws
 Requires that you be told the cost of credit before
signing an agreement
 Fair Credit Billing Act—Law that gives consumers
the right to know what information credit bureaus
are giving to potential creditors, employers and
insurers.