HUMS 202 Lecture Notes - Lecture 8: Credit Score, Charge Card, Cash Advance
Document Summary
Charge card: offered by retail stores, similar to credit card; balance on charge card account payable in full when statement is received; cannot carry balance no rate. Stored value cards: prepaid cards loaded w/certain amount of money; can"t build credit history w/ stored value card bc no money is being borrowed. Some credit cards offer protections like extended warranty period on purchased products or limited insurance coverage if you rent a car. Beware of introductory rates like 0% promotional offers b/c w/many of these, you have to pay the entire purchase by the time the promotional period ends to take advantage of low-rate offer and if you don"t lender charges interest. Fee: annual fees, late fees, balance transfer fees, cash advance fees grace period: # of days you have to pay your balance in full before credit card company starts charging interest. Balance computation method: determines how interest is calculated, avg daily balance = most common method.
