Credit Cards

Go to: www.aie.org
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. ist the tota! credit !imit a"ai!a#!e: $2$%&5.'0
What does (tota! credit !imit a"ai!a#!e) mean? *ow much you can spend without an
o"erdra+t +ee
%. ist the cash ad"ance ,-.: 21.//0% purchases ,-.: 15.//0%
5. 0escri#e what a #a!ance trans+er is and what happens? 1ou pay +or one credit card #y
using a di2erent credit card. 3he de#t +rom that card trans+ers to the new card.
&. Where shou!d the payment #e mai!ed 4!ocate address5? -67 8ard 9er"ices. -: 6o; ///$
<oney"i!!e$ <,
=. What is the customer>s new #a!ance? $2$53%.20
'. *ow much was the ?nance charge? $3%.20 what is a ?nance charge? , +ee that
represents the cost o+ credit. Find: Higher Payment!uicker Payo"
1. , 2% minimum payment$ $1000 at 13% interest wou!d #e paid o2 in 12.% years?
2. , 10% minimum month!y payment$ $1000 at 13% wou!d #e paid o2 in 3 years?
#o to Manage Money: $hat is a Credit Score and %nd: &nteracti'e Credit Re(ort
1. Who does @onathan <oneymaAer worA +or? .ea!!y 6ig 8ompany Bnc.
2. ocate his !oan through onecomet 8redit. ,utomo#i!e oan
What is his current #a!ance? $0
3. What was his highest #a!ance? $11$55/
%. What type o+ !oan was this? ,utomo#i!e
5. Bs the !oan opened or c!osed? 8!osed
1. What is a credit score and what does it te!! you? Bt is #ased on a person>s credit history.
, statistica!!y deri"ed numeric e;pression o+ a personCs creditworthiness that is used #y !enders
to access the !iAe!ihood that a person wi!! repay his or her de#ts
2. ist the 5 categories and their percentage o+ impact:
8redit <i;D 10%
Eew ,ccounts and 8redit .equestsD 10%
ength o+ 8redit *istoryD 15%
3ota! Bnde#tedness F 30%
.ecord o+ -aying your 6i!!s on 3imeD 35%
3. ist 5 ways you can impro"e your score:
-ay your #i!!s on time.
<ange 1our 0e#t
6e 9mart a#out 8redit
9u#scri#e to hea!thy repayment ha#its
Geep 6a!ances ow
%. What is the #est score range? =&0D'503he worst score range? 500D5=/
5. What are 2 things that create a (quicA hit) on your credit score?
7npaid medica! #i!!s and parAing ticAets can hurt your credit score.
*ea"y credit use can !ower your score$ e"en i+ you pay !arge #a!ances o2 in +u!! in a short time.
1our credit score wi!! drop i+ you sign up and use store cards +or initia! discounts