A credit card may look like a simple piece of plastic, but there’s a complex system behind how it works. Break down credit card mysteries by reviewing the terms at practicalmoneyskills.com/HS18 and defining those terms below using your own words.
1. Annual fee
An annual fee is the yearly cost of a credit card.
2. Annual percentage rate (APR)
An annual percentage rate is a yearly interest in various credit card balances.
3. Credit line
A credit line is the maximum amount of money that is allowed to be charged to a credit account.
4. Cash back/rewards
Cash back/rewards is what you get back from the credit card.
5. Balance
Balance is how much money is held within the credit card.
6. Minimum payment
The smallest amount of money that can be payed to a credit card.
There are many different laws in place to protect consumers when it comes to credit. Explore some of the laws that provide consumers protection by reviewing the information on the Federal Trade Commission’s website at practicalmoneyskills.com/HS19. Then define each law using your own words and be prepared to share your findings with the class.
1. What is the purpose of the Fair Credit Reporting Act?
The purpose of the Fair Credit Reporting Act is to make sure credit reports are fair to their customers.
2. What is the purpose of the Equal Credit Opportunity Act?
The Equal Credit Opportunity Act just makes sure that no one gets discriminated.
3. What is the purpose of the Fair Credit Billing Act and the Electronic Fund Transfer Act?
The Fair Credit Billing Act makes sure that people with credit accounts get fair bills and the Electronic Fund Transfer Act helps people pay through technology.
4. What is the purpose of the Fair Debt Collection Practices Act?
The purpose of the Fair Debt Collection Practices Act is to help collect debt, but remain fair when charging.
1. Annual fee
An annual fee is the yearly cost of a credit card.
2. Annual percentage rate (APR)
An annual percentage rate is a yearly interest in various credit card balances.
3. Credit line
A credit line is the maximum amount of money that is allowed to be charged to a credit account.
4. Cash back/rewards
Cash back/rewards is what you get back from the credit card.
5. Balance
Balance is how much money is held within the credit card.
6. Minimum payment
The smallest amount of money that can be payed to a credit card.
There are many different laws in place to protect consumers when it comes to credit. Explore some of the laws that provide consumers protection by reviewing the information on the Federal Trade Commission’s website at practicalmoneyskills.com/HS19. Then define each law using your own words and be prepared to share your findings with the class.
1. What is the purpose of the Fair Credit Reporting Act?
The purpose of the Fair Credit Reporting Act is to make sure credit reports are fair to their customers.
2. What is the purpose of the Equal Credit Opportunity Act?
The Equal Credit Opportunity Act just makes sure that no one gets discriminated.
3. What is the purpose of the Fair Credit Billing Act and the Electronic Fund Transfer Act?
The Fair Credit Billing Act makes sure that people with credit accounts get fair bills and the Electronic Fund Transfer Act helps people pay through technology.
4. What is the purpose of the Fair Debt Collection Practices Act?
The purpose of the Fair Debt Collection Practices Act is to help collect debt, but remain fair when charging.