lesson eight

credit cards

overheads
choices & decisions credit cards overhead 8-C
comparing credit cards

Card 1 Card 2 Card 3

CIBC Dividend Capital one American
Visa Platinum mater- Express
card

No annual fee No annual fee Annual fee $99.00

Annual Fee

21 days One month 1 month

Grace Period

19.99% for purchases 19.75% on all 19.99% on all

22.99% for cash purchases purchases
APR

none none none

Credit Limit

N/a If you fail to make Failure to make

Finance payments within 60 payments results in
days your APR goes up additional interest
Charge
to 26.99% rates

Multiply transactions by Calculate balance

Method of APR
Calculating
Finance Charges
none None none
Transaction
Fees

Interest rate will be Up to $35.00 Up to an extra 2%

Fees for Late elevated if payments are
Payment late
 No minimum income Costco card, earn cash 5% cash back during
2% cash back on back and vouchers your first year
Other Features
grocery purchases when shopping at Reduces to 2%
1% cash back on other Costco
purchases

choices & decisions credit cards overhead 8-C

 name: Emma Brooks date: Nov 8 2017

shopping for credit

Credit card costs and features can vary greatly. This exercise will give you a chance to shop for
and compare the costs and features of three credit cards.

directions
Using the attached form, research the costs and features of:
Two major credit cards
One credit card from a department store
When youre done, answer the following questions.

what did you find?

1. Which credit card has the highest annual percentage rate and how much is it?
The CIBC Visa and master-card have the same percentage rate of 19.99%
2. What method is used to calculate the monthly finance charges for the first major
credit card? Need to know your exact credit balance every day of billing cycle then multiply it by
daily rate

3. When does the finance charge begin to accrue on the credit card from the local
department store? 1 month later

4. Do any of the cards have annual fees? Yes American Express

If so, which one(s) and how much is the fee? $99.00
5. Is there a transaction fee on any card? no
If so, how much is it? N/a
6. Is there a minimum finance charge on either of the major credit cards? no
If so, how much is it? n/a
7. Does the first major credit card charge a fee for late payments? Yes
If so, how much is it? Up to $35.00
8. What is the grace period on the credit card from the local department store? Between 21 days
and 1 month

9. Jamel wants to buy a new CD player that costs $450. According to his budget, he can
afford payments up to $62.00 per month. Which of the three credit cards youve found
would you recommend Jamel use to purchase the CD player? The visa card

activity 8-1b choices & decisions credit cards

 Why? Because low interest rate and annual payments. Plus no income is needed to obtain this card

choices & decisions credit cards activity 8-1a