Shopping for credit & calculating credit based on APR. Using the information from the lectures on credit cards, identify three credit cards you would be interested in applying for. Use Nerdwallet: Credit Cards to look for ones that fit your needs and lifestyle. Try to pick ones that represent different credit card networks (Mastercard, Visa, American Express, Discover). Then, answer the following questions:
Which credit card has the highest annual percentage rate and how much is it?
What method is used to calculate the monthly finance charge for one of your selected credit cards?
When does the finance charge begin to accrue on one selected credit card?
Do any of the cards have annual fees? If so, which one(s) and how much is the fee?
Is there a transaction fee on any card? If so, how much?
Is there a minimum finance charge on either of the major credit cards? If so, how much is it?
What is the grace period on one of the credit cards?
Rafael wants to buy a new cell phone that costs $450. According to his budget, he can afford payments of up to $62/month. Which of the three credit cards you’ve found would you recommend Rafael use to purchase the cell phone?
Amy recently spent $500 on textbooks for her college courses. She cannot pay it all back right away, so she needs to calculate her estimated costs. With a minimum payment of $15/month, which credit card (of the three you researched) should she use? How long will it take her to pay off her debt with each of the three credit cards? How much interest would she pay on each? Are there any incentives or rewards that come from purchasing textbooks based on the three credit cards you selected (cashback, reward points, extra discounts…)?
