M D Start Date

Learning Objectives

Students will be able to:

● Establish criteria for choosing a credit card, based on the factors important to their needs

● Recognize and avoid marketing schemes that might lead to bad decisions

● Identify alternative routes to establishing credit, aside from opening their own credit card account

Watch the following commercials .

● Citi AAdvantage Platinum Select, 'Boat'

● Publisher: Citi

● Wells Fargo Active Cash Visa Card Commercial

● Publisher: Wells Fargo

● Chase Freedom Unlimited with Kevin Hart

● Publisher: Chase

● First Florida Bank - Credit Card Commercial

● Publisher: Copperwing Design

1. What features of each credit card are being showcased? The scan payment when it's a scanner and you just put the card on it and it and the transaction is done. 2. What marketing strategies are the credit card companies using? They are using a future strategy to get people to buy by showing how the card doesn't need to be inserted but scanned.

How to Choose a Credit Card

Review this list of 10 tips for choosing a credit card. (How to Choose a Credit Card) Pretend you are about to open a credit card. Categorize each tip as "Very Important for Me, Personally,"

"Somewhat Important for Me, Personally," or "Not Important to Me, Personally. Tip 1 These card offers are rarely your

best choice. Many of them attempt

to charge you for an application or

come with other fees. Instead,

choose from credit card offers

straight from the issuer

Tip 6 choose a credit card with a lower

interest rate.

Tip 2 Before you decide, make sure that

you will use the rewards. Don’t get

a miles card if you are more

interested in cash back.

Tip 7 Run the numbers and make

sure that your interest

savings during the intro

period will more than offset

your balance transfer fee.

Tip 3 Also, pay attention to the terms of

the rewards. Some cards advertise

that you can get 5% cash back,

but then you find out that you only

receive that amount on certain

categories, rotated throughout the

year.

Tip 8 If you have a large balance that

you carry regularly, the minimum

finance charge probably doesn’t

matter.

Tip 4 Finally, make sure you understand

redemption fees, blackout dates,

and expiration policies

Tip 9 Make sure that you look at other

fees and conditions.

Tip 5 You should also pay attention to

the default rate. This is the rate

you are charged if you are late with

a payment or go over your limit.

Tip 10 Before you commit to apply for a

credit card, double check the offer.

Compare offers, and then choose

the one that is likely to provide

you with the greatest benefit.

Why 0% APR MIght Not Be Good for Your Credit

Read this article (Why 0% APR Offers Might Not be Good for Your Credit) and then write at least 3 reasons why an introductory rate or balance transfer APR of 0% might not be a good offer after all.

A balance transfer if u bring to much of it in it can be significant when you abuse the interest-free period by overspending, because it will eventually lead to expensive finance charges, high credit utilization and missed payments. Mom, Can You Co-Sign My Credit Card?

If you're under 21, you (most likely) cannot get your own credit card. You'll need your parent's help. Read this article ( Mom, Can You Co-Sign My Credit Card?) and then explain the difference between co-signing, a joint account, and an authorized user An authorized user isn't legally responsible for the charges they add to an account, unlike a co-signer or someone on a joint account.

Secured Cards: Frequently Asked Questions

Read this article (What is a secured credit card?) and EXPLAIN how secured credit cards work. Then answer: What are 2 reasons someone might want to open a secured credit card? you pay a cash deposit upfront to guarantee your credit line. to improve their credit scores or establish a credit history. Secured credit cards typically have lower credit limits and more fees than unsecured credit cards do. Credit Card Security Tips

If you decide to open a credit card, security is extremely important. Read through the tips suggested in this article (9 Credit Card Security Tips) to learn about steps you can take to protect your credit card information. Record any tips you were not previously aware of regarding credit card usage.

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