UNV-103 T6 Credit Card Activity worksheet PDF

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Name: Dylan-Rose Josue Course: university of success Date: 10/16/ 21 Instructor: Cheryl pietkiewacz

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:

Card A: Capital One

Card B: Bank of America

Card C: American express

Is the annual percentage rate (APR) fixed or variable?

26.99% variable APR

0% Introductory APR for the first 15 Statement Closing Dates following the opening of your account. After that, your APR will be 13.99% to 23.99%, based on your creditworthiness when you open your account. This APR will vary with the market based on the Prime Rate.

0% introductory APR for the first 15 months from the date of account opening. After that, your APR will be 13.99% to 23.99%, based on your creditworthiness and other factors as determined at the time of account opening. This APR will vary with the market based on the Prime Rate.

What is the APR penalty of the card? Does it

No. There are no

If your APRs are

29.99%

trigger events when it is charged?

additional Penalty Fees associated with this card.

increased, the Penalty APR will apply indefinitely. Up to 29%

This APR will vary with the market based on the Prime Rate

What is t4he annual fee?

$0

$0

$0

What is the late fee?

Up to $40

Up to $40

Up to $40

What are the transactional fees of the card? This could be in regards to balance transfers, cash advances, etc.

26.99% variable APR; No Transfer Fee with this Transfer APR

13.99% to 23.99%,

Either $10 or 5% of the amount of each cash advance, whichever is greater. Foreign Transaction 2.7% of each transaction after conversion to US dollars.

What is the method of computing the account balance in the card?

It credits your account from the day the issuer receives your payment. To figure the balance due, the issuer totals the beginning balance for each day in the billing period and subtracts any credits made to your account that day.

take the beginning balance; (2) add an amount equal to the applicable DPR multiplied by the previous day's daily balance; (3) add new Purchases, new Account Fees, and new Transaction Fees; and (4) subtract applicable

We use a method called 'average daily balance (including new purchases).

payments and credits. What is the over-the-limit fee?

$0

$0

$0

Does the card have rewards for use? What are they used for?

None

$200 Online Bonus Offer

after you spend $2,000 in purchases on your new Card within the first 6 months of Card Membership. You will receive the $200 back in the form of a statement credit.

after making at least $1,000 in purchases in the first 90 days of account opening Earn 3% cash back in the category of your choice, like online shopping

Reflection Questions: 1. Which of the three cards had the best offer? I would say Bank of America has the best offer 2. Why is it important to know if a credit card is at a fixed or variable APR? The biggest advantage of a fixed interest rate is that your credit card issuer typically has to notify you before raising your rate 3. What is a positive in having a credit card? What is a negative? A positive is having good credit as the years go buy and negative is that if don’t pay your fees you can owe a lot of money and lose credit 4. Why is it important to establish credit? you can save money on interest payments and use the savings to invest in your future. 5. How can you keep your credit in good standing? Pay Your Bills on Time. ...

Stay Below Your Credit Limit. ... Maintain Credit History With Older Credit Cards. ... Apply for New Credit Only as Needed. ... Check Your Credit Reports for Errors. * 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....