4.3: Dealing with Credit Cards

4.3: Dealing with Credit Cards

Multiple Choice

Evaluate 10% of 2000.

• 2

• 20

• 200

• 2000

Multiple Choice

Evaluate 30% of 2000.

• 6

• 60

• 600

• 6000

Poll

Which of these credit cards have you heard of? (select all that apply)

• Mastercard

• American Express

• Visa

• Discover

• Capital One

Open Ended

List two advantages of using a credit card?

Advantages of Using a Credit Card

• Build credit

• Earn reward points or cash back

• increased purchasing power

• No foreign transaction fees

• Easy to carry

• Sign-up Bonuses

• Shop easy online

Open Ended

List two disadvantages of using a credit card?

Disadvantage of Using a Credit Card

• Easy to overspend - impulse buying

• High Interest Rates

• Fraud

• Multiple ways to hurt your credit score

• Annual Fees

• Surcharge fees

Interest

• Interest is only charged on overdue credit balances.

• Interest is charged from the date of purchase, not the due date of the payment.

• A credit card use that always pays their entire bill on or before the due date can often use the credit card at no cost.

Example Credit Card Statment

Multiple Choice

What is the credit limit?

• $49

• $17536.02

• $2463.98

• $20 000

Multiple Choice

What is the available credit ?

• $49

• $17536.02

• $2463.98

• $20 000

Multiple Choice

What is the total amount owing?

• $49

• $17536.02

• $2463.98

• $20 000

Multiple Choice

What is the minimum payment ?

• $49

• $17536.02

• $2463.98

• $20 000

Open Ended

What happens if I only make the minimum payment for a credit card bill?

Homework

Page 116 #1-4

Page 116-119 #1-5