Module 3.2: All about credit cards

Learn the technicalities of credit cards including interest rates, grace periods, late fees, penalty APRs, cashback and rewards, and cardholder benefits.

Competency: Jump$tart Coalition (2015), Credit and Debt: “Standard 1. Analyze the costs and benefits of various types of credit” (p. 15).

Introduction to American Personal Financial Literacy, a Udemy course
Module 3.2 video filmed 2016-03-08

Unsecured, bank’s money
Grace period track vs non-grace period track
High interest, though lower than payday loans
Cash advance interest higher than purchase interest
Failure to make min. payment = penalty APR + universal default
90 days delinquent is the worst for your credit reports
Credit cards very dangerous
Rewards typically 1-2% on all purchases, 5% categories
Be careful of reward programs that have useless points like PNC Bank. Do online searches
Large signup bonuses very lucrative, non-taxable
Get best signup bonus by searching online and being patient
Credit cards help you build credit!
Multiple cards confusing — track online — use calendar to keep track
Cardholder benefits vary a lot. Common: chargebacks, extended warranties
Annual fees typically not worth it. Can usually be reimbursed within 60 days
Charge cards
Can negotiate interest rates by calling in
Different networks: Visa MasterCard Discover Amex

By Richard Thripp