Transcript Credit Card Lesson


In your notebook:
› Draw
› List
› Write
› Everything you know about credit and credit
cards.
› When the time sounds, share your list with
your partner. We will discuss as a class.

I will be able to discuss the responsibilities
associated with having a credit card by
listing three advantages and two
disadvantages of owning a credit card.

Credit is the ability to obtain goods and
services without actually having to pay
for them.

Your credit score is a number financial
institutions use to determine how risky it is
to lend you money.
A Credit card allows you to obtain goods
and services by borrowing money from the
credit card company (up to a specific limit)
by using your credit card. All money
borrowed must be repaid in full and on time
or the consumer must pay the credit card
company additional money.
Advantage or disadvantage?
A loan that charges interest if not paid in full.
Encourages or enables impulse purchases.
Consumer protection from fraud.
Quick source of funds in an emergency.
Responsible use of cards increases credit score.
No extra fee if credit card balance is paid in full each month.
An additional fee is charged if payment is late.
Misuse of credit cards lowers credit score.
Ability to obtain needed items
Some credit cards allow you to earn rewards (depending on usage)
Disadvantage
A loan that will charge interest if not paid in full.
Advantage
Responsible use of cards increases credit score.
Advantage
Consumer protection from fraud.
Advantage
Quick source of funds in an emergency.
Disadvantage
Encourages or enables impulse purchases.
Advantage
No extra fee if credit card balance is paid in full each month.
Disadvantage
An additional fee is charged if payment is late.
Disadvantage
Misuse of credit cards lowers credit score.
Advantage
Ability to obtain needed items
Advantage
Earn rewards

What are three benefits that come with
having a credit card?

What are two potential problems credit
cards can cause?

What is one thing that surprised you
about credit cards?