Credit Cardsby Andrew Travis, Dru Carson, Elissa Knopp and Kaitlin Lalk

History of Credit Cards

Credit cards originally looked like this:

● First made of Celluloid, a form of plastic● First focused on entertainment charges and travel by businesses

● First bank card "Charg-It," introduced in 1946 by John Biggins

Advantages

Convenience- Credit cards can save you time and troubleLow-cost loans- Earns bank’s trust with a better credit scoreInstant cash- Cash advances are quick and convenient, putting cash in your hand when you need itPerks- From frequent flier miles to discounts on automobilesPurchase protection- Most credit card companies will handle disputes for you

Disadvantages

Overuse- Revolving credit makes it easy to spend beyond your meansPaperwork- You'll need to save your receipts and check them against your statement each monthHigh-cost fees- Your purchase will suddenly become much more expensive if you carry a balance or miss a paymentUnexpected fees- Typically, you'll pay between 2 and 4 percent just to get the cash advance; also cash advances usually carry high interest ratesDeepening your debt- Consumers are using credit more than ever before, If you charge freely, you may quickly find yourself in over your head

Smart and Appropriate Uses

● Method of payment● Earn rewards ● Protected by false delivers● Use in moderation● Build a better credit● Pay balances in full

Inappropriate Uses

● Retail therapy- don’t shop because you are bored, find less expensive ways to cope

● Financing debt- meaning to take out a loan or another credit card because you feel you are in too much debt

● Utility bills- this will result in excessive interest charges on small amounts

● Perishable items- these things will depreciate in value and you end up paying interest on something consumed in a short amount of time

Media’s Role in Credit Cards

● Shows all the things you can buy if you have a credit card● Makes the commercial funny or makes it more enjoyable to watch● Shows convenience for the credit card● Celebrities are used in commercials to say if they have the card,

you should get it too

Use of Credit Cards by College Students

● 84% of undergraduates had at least one credit card● $3,173- Average balance carried by college students● 19%- Seniors who graduate with a balance greater

than $7000● Act of 2009- Higher barriers to credit approval, no more

freebies, much more difficult for anyone under the age of 21 to qualify for a credit card

Tips to use a Credit Card wisely

● Wants vs. needs● Pay off balances strategically ● Don’t apply for credit you don’t need ● Keep your balances low

Works Cited● "The History of Credit Cards."CreditCardscom News. Web. 10 Dec. 2014. <

http://www.creditcards.com/credit-card-news/credit-cards-history-1264.php>.

● "Advantages and Disadvantages of Credit Cards - 360 Degrees of Financial Literacy." Advantages and Disadvantages of Credit Cards - 360 Degrees of Financial Literacy. Web. 12 Dec. 2014.

● "6 Smart Ways to Use a Credit Card - Credit.com." Credit.com. Web. 12 Dec. 2014. <

http://blog.credit.com/2014/09/6-smart-ways-to-use-a-credit-card-94782/>.

● "Three Inappropriate Uses of Credit." OpposingViews.com. N.p., n.d. Web. 18 Dec. 2014. <

http://www.opposingviews.com/i/three-inappropriate-uses-of-credit>.

● "Inappropriate Uses of Credit Cards." EHow. Demand Media, 15 July 2010. Web. 18 Dec. 2014. <

http://www.ehow.com/list_6738437_inappropriate-uses-credit-cards.html>.

● "Social Media Plays Big Role in Attracting Youth to Credit Card Programs." Sterling Payment Technologies RSS. N.p., n.d. Web. 18 Dec. 2014.

<https://www.sterlingpayment.com/news/industry-news/merchant-processing-industry/social-media-plays-big-role-in-attracting-youth-to-credit-card-

programs/>.

Works Cited Continued ● "College Students and Credit Cards – Some Statistics." College Students and Credit Cards – Some Statistics. N.p., n.d.

Web. 17 Dec. 2014. <http://www.collegeparents.org/members/resources/articles/college-students-and-credit-cards-%E2%80%93-some-statistics>

● "Students, Credit Cards and the New Reform Law: The Fine Print." CreditCardscom News. N.p., n.d. Web. 17 Dec. 2014. <http://www.creditcards.com/credit-card-news/college-student-credit-card-law-1279.php>

● "10 Ways to Use Credit Cards Wisely." Woman's Day. N.p., n.d. Web. 18 Dec. 2014. <http://www.womansday.com/life/saving-money/10-ways-to-use-credit-cards-wisely-82969>

● "Using Credit Wisely - Fidelity Investments." Using Credit Wisely - Fidelity Investments. N.p., 04 Dec. 2014. Web. 18 Dec. 2014. <https://www.fidelity.com/viewpoints/personal-finance/credit-cards>