Credit Card

© Family Economics & Financial Education –Updated March 2010– Credit Unit – Understanding a Credit CardFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The

University of Arizona

Credit Card

1.4.1.G1

Advantages to using Credit Cards

AdvantagesConvenient payment

toolUseful for emergencies

Often required to hold a reservation

Able to purchase “big ticket” items and spread

out payments

Protection against fraud

Opportunity to establish a positive credit history

Online shopping is safer than using a debit card

because of the Fair Credit Billing Act protectionPossibility of receiving

bonuses, such as frequent flyer miles or cash rebates

Credit Card

© Family Economics & Financial Education –Updated March 2010– Credit Unit – Understanding a Credit CardFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The

University of Arizona

Credit Card

1.4.1.G1

Disadvantages to using Credit Cards

DisadvantagesInterest can be costly

when a balance is revolvedAdditional

penalty fees may apply

Tempting to overspend

Risk of identity theft

Responsible for lost/stolen cards

Applying for multiple accounts can lower your

credit score