Comparing Credit Cards

WebQuest Process 2 - Week Two

Are you credit card smart? Check out this article from the College Board.

### Can You Calculate How Much It Costs to Use Credit?

The High Cost of Using Credit Cards - What the credit card companies don't want you to know.

### How Do You Compare Different Credit Cards?

Choosing A Credit Card from the Federal Reserve Board offers advice.

Best Credit Cards for Students, choose them wisely

#### Production List

Table One: Comparison of 4 Credit Cards (1 card per team member)

Table Two: Cost of Credit Card Purchase with \$3,000 balance (Group table)

Table Three: Cost of \$500 Laptop Purchase (4 cards, 3 scenarios - 1 card per team member)

#### Compare Credit Cards

Create a table to compare credit card offerings. Include the following information for 4 different cards. Read the extra information and make appropriate comments. You can use this form from the Federal Reserve Board. Each team member should research one credit card.

Check Bankrate.com's Survey of Student Credit Cards

#### Calculate the Cost of Credit Card Purchases

1. Complete this MS Word table or create a new one using Excel, or another application of your choosing.

Directions: Use the interest rate of 18% and an annual fee of \$49 dollars to complete this chart. In Month 1, there was a balance due of \$3,000. The borrower will make a monthly payment of \$200 and keep new purchases at \$115 per month for the year.

Calculate the interest for each month (balance x 1.5%). To obtain the balance for the next month, subtract the payment from the balance and add the cost of new purchases plus monthly interset and fee. For example: \$3,000 - \$200 = \$2800 + \$115 + \$94 = \$3,009

2. Calculate the total cost of purchasing a laptop computer for \$500 using the terms of the 4 credit cards you compared. Include the following information: How long will it take to pay off \$500 if you just make the minimum payment. How much will you have to pay every month if you want to pay off the balance in 12 months or 24 months? What is the total cost (purchase price plus interest and fees) of these 3 scenarios. Each team member should use 1 card to calculate the results.

Credit Card Calculators can be found on the Internet. Here's one from Kiplinger.com. Here's another one from CreditCardNation.com. Yet another can be found here.