Consumer Credit: Credit Card Research
November 2, 2009

Objective:
Students should understand the selection, use, and management of credit card accounts and develop a working knowledge of consumer credit porducts, learn how to use consumer credit products to meet individual needs, and learn to monitor credit use and implement startegies to avoid credit misuse.

Learning Outcomes:
Students will achieve a moderately to highly skilled status by showing proficiency in the following:

• Know how credit cards work.
• Understand the costs of credit.
• Describe the different types of credit cards
• Know what determines your fredit card worthiness and hoe to secure a ccredit card
• Manage your credit cards and open credit

Coursework Procedure:
Part 1: Using the Internet, research credit card offers. Find an offer for each one of the following credit cards:

• Bank credit card
• Premium or Prestige card
• Affinity card
• Secured credit card
• Travel and Entertainment (T&E) card
• Single-purpose card
• Traditional charge account

For each one of these cards, I would like you to find (if possible) the following information:

• APR (Is this a "teaser" rate? If it is, also include what the rate will eventually become)
  • Is the rate fixed or variable (explain how the rate may adjust if variable)
• How is interest calculated?
  • Average daily balance method?
  • Previous balance method?
  • or, adjusted balance method?
• Any fees including, annual fee (if waived as part of an offer, what will it eventually be), late fees, cash advance fees, etc.
• Bonus offers if you apply for the card
• Any "points" programs the card offers (points towards products or services or actual cash back)

Part 2: Conduct an Internet search on college student credit card usage and average balances. Discuss your findings and answer the following:

• Why is it (or why is it not) important for students to have access to credit cards?
• Do you currently have or use a credit card?
• How must you maintain the credit card in order to maintain a good credit score?
• Should credit card companies be allowed to advertise and solicit customers on college campuses?
  • Would you feel differently if, instead of college students, companies be allowed to advertise and solicit to high school students?
• Ask students to defend their opinions.

Your paper should have two sections labelled "Part 1" and "Part 2". Do not hand this assignment in as two separate essays or you will lose credit.

Due Date(s) and Submission Instructions:
This assignment is due on Wednesday, November 4, 2009.

FIN 1050 - PERSONAL FINANCE
Grade Levels: 11-12
Units of Credit: 3 credit hours (SLCC)
Course Number: FIN 1050
Prerequisite: None

Study of financial skills essential for economic success. Subjects: Financial planning, fin. services, income taxes, consumer buying, insurance, retirement planning & estate planning.