pf credit notes (selecting a credit card)

What is one reason a family member might be reluctant to co-sign for a credit card?

Family members might feel they will get stuck with the debt, they do not want the responsibility.

What marketing strategies are the credit card companies using?

More spending means more points to redeem for things you want This card will make your life EASIER Complimenting you on what a smart consumer you are Showing that they value YOU

grace period

You want to know how many days you have to pay off your balance without being charged interest or to pay the minimum so you aren't hit with fees/penalties

annual fee

You want to know if you have to pay a fee every year. The fee could be greater than the amount of rewards earned.

Penalty Fees and rates

You want to know what charges you will have to pay if you are late with a payment.

APR

You want to know what interest charges you will have to pay if you don't pay the full balance on time.

What is a credit card's "APR" and how does it work?

APR means Annual Percentage Rate. This number is the annualized interest rate on unpaid balances within your account. Finding a lower APR means you should pay less interest

What are 2 reasons someone might want to open a secured credit card?

*They are unable to open a unsecured credit card because they have bad or limited credit history *Secured cards can enable them to develop a stronger credit history with little risk of overspending *They don't need support of a cosigner or someone willing to add them as an authorized user

Five ways a secured credit card works

1. You place a refundable security deposit using a bank transfer. 2. The amount of your deposit becomes your spending limit. 3. The credit card company holds your deposit as collateral. 4. Purchases and payments are the same as with any other credit card. 5. You get the deposit back when you close your account.

What features of each credit card are being showcased?

Points reward system on everything you buy-- earn by spending; redeem for fun Cash back is EASY compared to point system; 1% back on everything; no limit to cash back Low rate, fixed APR, accepted worldwide, backed by the bank, friendly staff/good customer service

Explain how secured credit cards work, including details about the security deposit, how payments work, and why they're less risky for lenders.

The borrower puts down a security deposit that doubles as the credit card's limit. They make purchases as they would with a regular credit card, and they're responsible for paying at least the minimum balance on time every month. As long as they do so, their account will stay open, they build credit, and their security deposit remains untouched. If they fall behind or don't make payments, the lender uses the security deposit to cover the overdue payments and may close the card. Secured cards are less risky for the lender, because the borrower's own security deposit is on the line.