EPF.13B ANALYZE CREDIT CARD FEATURES AND THEIR IMPACT ON PERSONAL F INANCIAL PLANNI NG

EPF.13E COMPARE TERMS AND CONDI T I ONS OF VARIOUS SOURCES OF CONSUMER CREDI T

Consumer Credit

CREDIT CARDS HAVE MANY POSSIBLE FEATURES. A DECIS ION MODEL CAN HELP SELECT THE APPROPRI ATE CARD FOR THE

CONSUMER.

EPF.13b analyze credit card features and their impact on personal financial planning

What are some of the features of credit cards?

Consumers should consider the impact on personal financial planning of credit card features, such as

annual percentage rate (APR) annual fees compound interest penalty charges credit line promotional incentives account disclosure statement minimum payments.

How can a decision model be used to select a credit card?

To use a decision model in selecting a credit card, the consumer needs to decide what features are most important in order to establish criteria.

The benefits of using credit cards include

The costs of using credit cards include

float (deferred payment) convenience capability to conduct

online transactions rewards purchase protection fraud protection payment over time establishing credit.

interest fees (e.g., late, annual,

over-the-limit) risk of identity theft risk of borrowing beyond

the ability to repay length of time to pay off

the balance when paying only the minimum payment.

What are the costs and benefits of credit cards?

B ORROWERS SHOULD COMPARE THE TERMS AND CONDI T I ONS OF VARIOUS SOURCES OF

CONSUMER CREDIT.

EPF.13e compare terms and conditions of various

sources of consumer credit

Consumers of credit should compare

Consumers should consider costs and benefits of various sources, including

percentage rates annual fees transaction fees finance charges risk of losing assets.

retailers banks credit unions finance companies risk-based lending

companies (e.g., payday loan services, pawnbrokers, title loan services).

What are the terms and condition s of various sources of consumer credit?