Glencoe Accounting

Chapter 5: Transactions that Affect Revenue, Expenses, and Withdrawals

Making It Personal

Bankrate.com, Credit Card Basics

While credit cards are convenient, it's easy to get in over your head. More than 1.4 million Americans filed bankruptcy in 2004, many resulting from overwhelming credit card debt. When you begin using credit cards, it is important to understand how to manage your payments and protect your credit history. Bankrate.com offers a guide called Credit Card Basics where you'll get information and tips on the use of your cards.

Destination Title: Bankrate.com, Credit Card Basics

www.bankrate.com/brm/green/cc/basics-intro.asp

Guided Activity

Start at Bankrate.com's Credit Card Basics Web site. Record your answers to these questions separately.

1. In the left navigation bar, click on Chapter 1: Ready for credit and then select 3. How do you plan to pay from this chapter's topics. What is a payment profile?
2. Now go back and click on Chapter 2: Credit scores, credit reports, and you in the left navigation bar. Select What's a credit score? from this chapter's topics. What factors determine your credit score?
3. Go back and click on Chapter 3: Costs and fees in the left navigation bar, and then select 4. How to avoid late fees from this chapter's topics. Describe steps that credit cardholders should take to be sure that payments are credited to their accounts immediately.
4. What consequences can you identify for someone who has used credit cards unwisely and cannot pay the bills?