Credit Cards

Click Manage Your Money$, Manage Credit and then:

Find: How to Read a Credit Card Statement and answer the following:
1. What is the minimum payment amount? $50
2. What is the required minimum payment percentage? 2%
3. List the total credit limit available: $2,465.80
What does total credit limit available mean? The amount of money you currently have
left on your credit card after subtracting your current balance.
4. List the cash advance APR: 21.99% purchases APR: 15.99%
5. Describe what a balance transfer is and what happens? A balance transfer is when you
transfer a balance from one credit card to another. A fee is charged and your credit card
company may send you checks to pay off the other card. The balance is transferred when you
use one of these checks to pay the amount due on the other card.
6. Where should the payment be mailed (locate address)? 9999 Main ST, Anytown, TX 99999
7. What is the customers new balance? $2,534.20
8. How much was the finance charge? $34.20
What is a finance charge? The dollar amount you pay to use credit
Find: Higher Payment=Quicker Payoff
1. A 2% minimum payment, $1000 at 13% interest would be paid off in 12.4 years?
2. A 10% minimum monthly payment, $1000 at 13% would be paid off in 3 years?
Go to Manage Money: What is a Credit Score and find: Interactive Credit Report
1. Who does Jonathan Moneymaker work for? Really Big Company Inc.
2. Locate his loan through Lonecomet Credit. $255 for 60 months
What is his current balance? $0
3. What was his highest balance? $11,559
4. What type of loan was this? Automobile
5. Is the loan opened or closed? Closed

1. What is a credit score and what does it tell you? A number that reflects your creditworthiness
at a given point in time.
2. List the 5 categories and their percentage of impact:
Credit Mix: 10%
New Accounts and Credit Requests: 10%
Length of Credit History: 15%
Total Indebtedness: 30%
Payment History: 35%
3. List 5 ways you can improve your score:
Keep balances low, contact your creditors or a credit counselor if youre having trouble, check
your credit report, pay your bills on time, and dont open unneeded credit accounts.
4. What is the best score range? 760-850

The worst score range? 500-579

5. What are 2 things that create a quick hit on your credit score?
Unpaid medical bills and parking tickets and if you sign up and use store cards for initial
discounts