Credit+Cards

Back: Endangered Species You've been hard at work the past few weeks and payday finally arrives. When you check your pay statement, you're surprised to learn that there are a few fees deducted automatically so you won't be getting the full $2,000 you expected but instead $1,775. You also get your credit card bill in the mail when you get home. You needed to buy some things to spruce up your new apartment so the bill was a little higher than normal at $2,125. You now have a problem. Photo courtesy of barsen 1. You got a credit card when you were in college to start building up your credit score. Most major credit card companies offer cards geared towards students. Visit the following sites and pick out a student credit card.

Capital One Citi Discover

2. Record your choice of credit card along with the purchase and penalty APRs on your worksheet. Ignore any annual fees or intro APRs. List the high % if a variable APR is given. To find the Penalty APR, you may need to click on Card Details and/or Terms and Conditions.

3. Using the simulator, choose how much money you will pay each month towards your remaining balance. Use the worksheet to record your information. You should use the Purchase PR for the rate. Choose two different monthly payment amounts to see how that changes things.

4. Another option would be to wait until you've saved enough money up from your paycheck to pay off the outstanding balance all at once. The trouble with this is that you are now charged interest at the Penalty APR. Use your worksheet to determine how much the credit would cost you if you would pick this option.

5. Use the worksheet to record your thoughts on the best payment option. Explain why you think it is the best option.

Next: Buying a Car