Title | Credit Card Activity |
---|---|
Author | Shayla Kells |
Course | University Success |
Institution | Grand Canyon University |
Pages | 3 |
File Size | 239.8 KB |
File Type | |
Total Downloads | 85 |
Total Views | 164 |
Download Credit Card Activity PDF
Name: Shayla Kells Course: UNV-103 Date: 10/5/2019 Instructor: Kristina Rivera
Topic 6 Credit Card Evaluation Activity Directions: Research three different credit card companies and answer the questions in the table below for each. After you review and answer all the questions, you will evaluate which card and company offered the best financing option. Questions to Consider:
Discover
Chase
American Express
Is the annual percentage rate (APR) fixed or variable?
Variable
Variable
Fixed
What is the APR penalty of the card? Does it trigger events when it is charged?
No penalty
No penalty
The APR goes up
What is the annual fee?
No fee
$150
$95
What is the late fee?
$27
$25
$27
What are the transactional fees of the card? This could be in regards to balance transfers, cash advances, etc.
0% or $0
3%
2%
Discover Calculates percentage of the full
Chase uses average daily
American express uses “Average daily Balance”
What is the method of computing the account balance in the card?
balance
balance method
method to calculate the interest on your account each month.
What is the over-the-limit fee?
Discover does not have an over-limit fee and it must be authorized for an over limit charge to go through
Chases allows over the limit without a charge; however, they must be approved cases by case.
You can spend over your credit limit, but you must have an agreement.
Does the card have rewards for use? What are they used for?
Discover lets you earn 5% cash back. Like gas stations, grocery stores, and restaurants
You can earn points that are worth money.
Yes, they use rewards points for traveling.
Reflection Questions: 1. Which of the three cards had the best offer? I think discover has the best offer because there is no annual fee.
2. Why is it important to know if a credit card is at a fixed or variable APR? It is important to know because if the APR is variable, it can change without notice. 3. What is a positive in having a credit card? What is a negative? A positive is being able to purchase something you may not have the money for all at one time. A negative is interest rate, you’re going to be paying a lot more than the original price.
4. Why is it important to establish credit? It is extremely significant to establish credit for multiple occasions, to get a good brand credit card, a mortgage, a car loan, and many other things based on borrowing money. 5. How can you keep your credit in good standing? Always make small purchases on a credit card and always pay it off, never be in debt. What’s even better is to pay your credit card payments even before they are due. It will always benefit you to have good credit, so make sure to start out strong. * Note: there are several credit reporting agencies (some are free) that you can use to review your credit standing. If you are curious to find out your standing, talk to your banking institution for suggestions....