Staringhistory.weebly.com



What Is APR? How Do Interest Rates Work?APR is an acronym for Annual Percentage Rate. It primarily matters if you plan on not paying off your credit card bill every month. APR is the interest you will be charged on any amount you did not pay in full from your last statement balance. If you’re debating between credit cards and plan to carry a balance, comparing APRs is a good way to see which card might be better for you.Pro tip: You can negotiate your APR, especially with credit cards you’ve had for a long time and that you’ve paid on time.Bottom line: Don’t carry balances on credit cards unless you absolutely have to. Then you get to use your credit cards for free and APR is irrelevant!Glossary:· Card Class: Classic, Platinum· Annual fee: Yearly fee to use the card· V= Variable Rate: The rate will change throughout the year· F= Fixed Rate: Interest rate will remain the same· APR: rate of interest that includes fees and costs paid to acquire the loan.· Late fee: Fee charged if payment is not received on time· Over the limit fee: Fee charged if you spend more than your credit limit allows· Grace period : The standard grace period is usually between 20-30 days. If there is no grace period, finance charges will accrue the moment a purchase is made with the credit card.· APR for cash advance: rate of interest including fees when you use credit cards to withdraw cash· Fee for cash advance: A charge by the bank for using credit cards to obtain cash. It can be a flat (set) fee or a percentage of the amount of the cash advance. Comparing Credit Card Rates Directions: Go to . Under the CREDIT CARDS tab at the top, click on Best Credit Cards of 2018 under “Best Offers.” ALL ANSWERS SHOULD BE IN A DIFFERENT COLOR TEXT. When you finish, upload this document to your webpage. 1. Complete the chart below to comparing three credit cards, of your choice, and their rates.TypeCard #1Card #2Card #3Name of Card Rate (APR) Other benefits offered 2. Why would you choose one type of card over another?3. Use the Credit Card Payoff Calculator under the Credit Cards tab at the top and compute the cost of charging $2000 on your credit card to pay for the new couch and television set you need in your apartment. Calculate the cost of paying only the minimum and cost of paying a higher amount. You may not pay off your full balance or pay more than $150 per month. Charge$2000Minimum payment(use the minimum from a credit card you looked up)Other payment ______________(any amount over minimum)Rate (APR)13%# of months to repayTotal cost of credit(above original charge)4. What is the best payment plan when using a credit card? 5. Take the link to Best Student Cards under the Credit Cards tab at the top. Pick two and compare them by filling out the chart below Card 1:Card 2:Company/Bank Card Class Annual Fee Variable or Fixed Rate APR Late Fee Grace Period Over the limit Fee Cash Advance APR Cash Advance Fee 6. Which card is the best for you and why? ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download