Credit Cards, Continued

Credit Cards, Continued

Some important lessons about credit cards

1. It is not free money

The money spent on a credit card has to be repaid.

Although it is useful to have that money at your finger tips, you must remember that it is not free

If you are late on your monthly credit card payment, you will have to pay interest.

Late fees or Interest fees will apply

Multiple Choice

What are interest fees on a credit card?

• The amount you are allowed to spend

• The maximum amount on the card

• The amount in percentage you must pay if you are late

You should not rely on your credit card

Debit cards and Credit cards look similar but they act very differently.

Your debit card, which uses money you have already earned, should be what you use to pay for goods.

Ex. Food and gas, everyday needs should be paid with by a debit card.

There is a limit on what you can spend on your credit card

Credit card companies have a 'credit limit' a max amount that you can use on that credit card.

Your creditor IS NOT OK with you missing your credit card payments

This isn't your parents, this isn't a video game where you get another chance, this is real life. BE RESPONSIBLE.

You will be penalized, and it will hurt your credit score and standing with the bank.

Multiple Select

There is no limit on your credit card

• True

• False

Multiple Select

A Credit card is best used for...

• gas

• food

• coffee

• airline tickets

DO NOT RELY ON YOUR CREDIT CARD FOR ONLINE PURCHASES

• Uber eats - Shopping online - App store orders

• It is so easy and it seems so painless to use your credit card and have it connected to online services. DO NOT FALL INTO THIS TRAP

• Companies work very hard to make it easier for you to make purchases. Recognize this, be smart.

Only use your credit card if you are able to pay it back.

Staying ahead of your payments and being a responsible credit card owner is an easy way to stay out of trouble.