Credit Card Offer
What is a Schumer Box?
A box that discloses the terms and fees of credit cards as well as the main costs.
What is a credit card?
A plastic card used as a line of credit established in advanced so a person can borrow up to the established amount.
3 monthly payment methods
Minimum payment, partial payment and full payment.
Outlines important information about your credit card
Credit Card Statement
What is an introductory rate?
APR charged during the credit card's introductory period after the credit card account has been opened
Interest rate changed on new transactions if the penalty terms in the contract are triggered
Penalty APR
The maximum dollar amount that can be borrowed
credit limit
Another name for a credit card bill
credit card statement
When should you review your credit card statement?
monthly
Macy's, Starbucks, etc.
credit card companies
Types of Penalty fees you may see
Late- payment, Over- the- limit, and returned payment fees
Rate at which interest is charged, expresses the cost of credit as a yearly interest rate is referred to as:
Annual Percentage Rate (APR)
____ is charged when ___ is not paid in full
Interest; payment
Name at least 2 sections on a credit card statement
Summary of account; Payment Info.; Change of Interest; Changes to your Account; Transactions: Fee or Interest; or Interest Charge Calculation.
credit cards are a form of ___ credit
open-end
Best way to pick your credit card
comparing credit card offers and evaluating the schumer box
You must be 21 years old, have a co- signer of proof of sufficient income to make payments
Obtaining a credit card
You have tons of interest, and it can take up to several years to fully pay off
minimum payments
Name the 3 steps to obtain a credit card.
1)Shop around; 2)Complete application; and 3)Wait for Approval or not.
What should a cardholder do if they lose their card?
Report the card immediately to protect themselves from personal liability for unauthorized charges
List at least 3 Interest rates, charges and fees disclosed in the Schumer box
APR for purchases, balance transfers, cash advances, penalty APR, minimum interest charges, set-up and maintenance fees, transaction and penalty fees
Paying your credit card balances in full every month or on time, knowing how it affects your credit history and checking monthly statements for errors can help you develop:
A positive credit history
Why is paying a less percentage for APR better?
It's cheaper and results in less interest
Name 4 of 5 additional benefits that creditors offer you to help pick their credit card.
1)Cash rebates; 2)Airline; 3)Warranties on items purchased; 4)Travel Insurance; or 5)Gift cards, Merchandise, etc.
Who is the person the Schumer box was named after?
NY congressman Chuck Schumer