Credit Cards

By: Krishna Polasani

What is a Finance Charge?

• A finance charge is a total dollar cost of credit including interest and all other charges.

• A credit company might give a a finance charge if you have a debt in your credit card.

What Interest Rate do Credit Card Companies often charge? Why is it dangerous to pay the

min amount each month?

• Principal • Interest rate • Time

• It is dangerous because you will have a bad credit report.

Four common Credit Cards Companies

• MasterCard• Visa• American Express• Discover

Credit rating

• A person’s reputations or paying bills on time is known as credit rating.

• 800 is a good credit rating• 300 is a bad credit rating• You can check your credit on the internet at

freecreditreport.com

Good Things about Credit

• A person’s reputations or paying bills on time is known as credit rating.

• 800 is a good credit rating• 300 is a bad credit rating• You can check your credit on the internet at

freecreditreport.com

Benefits of Credits

• Convenience• Immediate Possession• Savings • Credit Rating• Useful Emergencies

Concerns about credits

• Overpaying• Too small• Bad Credit Report• Can lose a credit card

Formula for Calculating Interest

What is a Credit Application? When do you often fill one out?

• A credit application is a form on which you provide information needed by a lender to make a decision about granting credit.

• You write and credit application when you have to.

Truth in Lending Law

• The Truth in Lending Act (TILA) of 1968 is a United States federal law designed to protect consumers in credit transactions, by requiring clear disclosure of key terms of the lending arrangement and all costs. requirements contained in Regulation Z, as well as the statute itself.

Fair Credit Billing Act

• The Fair Credit Billing Act (FCBA) is a United States federal law enacted as an amendment to the Truth in Lending Act. Its purpose is to protect consumers from unfair billing practices and to provide a mechanism for addressing billing errors in "open end" credit accounts, such as credit card or charge card accounts.