Choosing a Credit Card. By: Hunter Raymond, Bailey Lownsbery, Crysantha Delnay

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1 Choosing a Credit Card By: Hunter Raymond, Bailey Lownsbery, Crysantha Delnay

2 Rewards Card Standard Card Premium card Balance Transfer card Limited Purpose Cards Secured Credit card Prepaid card

3 What are the different types? Standard cards: A card that you get from the bank, you can make purchases on credit. Which means you pay the bank back later. Premium cards:credit Card from Bank of America Earn unlimited points and get flexible redemption options with the Premium Rewards credit card from Bank of America. Rewards cards:a cashback reward program is an incentive program operated by credit card companies where a percentage of the amount spent is paid back to the card holder. Balance transfer cards: is where part or all of a debit balance (or debt) you owe to another lender is transferred from one card to another, Limited purpose cards: A card that has a limit of money can spend. Secured credit cards: Cash-back on every purchase. Prepaid cards: You put a specific amount on a card and that is how much you can spend. Business credit cards: get 3% back when you use at gas stations and or office supplies places.

4 How to choose a credit card that's right for you What kind of credit card you choose should depend on how you plan to use it, among other factors. Choose a balance transfer credit card if you're currently paying off card balances on multiple credit cards, and would like a way to consolidate your debts into one monthly payment. Choose a low interest credit card if you typically carry over a balance from month to month. Choose a secured credit card if you have no credit history, or if you are recovering from a foreclosure or bankruptcy. Choose a rewards credit card or cash back credit card if you'll use your credit card often to maximize your rewards or cash back earned.

5 Where to Find a Credit Card Banks American Express Bank of America Barclaycard Capital One Chase Citi Discover U.S. Bank Wells fargo Retail Stores Best Buy Home Depot JCPenney Kohl s Lowe s Macy s Sears Target Walmart Credit Unions Alliant Connexus First Tech Federal The Golden 1

6 Common Credit Card Features Credit Limit - The maximum balanced amount of money on your credit card at a given point in time without receiving a penalty. Balance - The amount of money owed to the credit card company. APR/Interest Rate - The price you pay for borrowing money, typically stated as a yearly rate. Grace period - The entitlement of 21 days from the time you receive your bill to pay off the new balance before incurring finance charges. Fees - Payment in return for services.

7 Common Credit Card Features Continued Cash withdrawals/advances - When your credit card company lends you money, essentially charging your account. Limits on liability - The maximum amount for which an insurance company may be held liable under a given policy. Incentives/rewards - A way to earn kickbacks for using credit.

8 Hidden Costs Your credit score can go from good to bad in seconds. Credit card rebates our making the price of the object go up. You have to pay the amount at a later date and hopefully you will have enough money to do so. If you use credit then you could have charges added to your final bill. You may only have a little bit of time to pay the bill. The period that you have to pay the bill is called the grace period.

9 General Do s and don'ts while shopping with a credit cards DO S Sign the back of your credit card as soon as you receive it. Keep a record of all your credit card account numbers in a secure place. Memorize your PIN. Keep you eye on your credit card during transactions and ensure that it s your credit card been returned to you. DON TS Don't make purchases from online retailers you're unfamiliar with Never share your PIN with anyone. Never let anyone see you input your PIN. Never leave your credit card unattended.

10 How do you get your credit card interest rates lowered? 1. Find better deals. 2. Start with your oldest card first. 3. Call the bank and ask how you could get your rate lower remember to be polite. 4. Be persistent which means use your credit card at a constant rate.

11 Sources

12 The End