Moderator:
Credit cards have been playing an important role in our life. Cardholders use it to buy goods and then to receive a statement every month. However, using a credit card can be very expensive. Do you know why? Miss Lily Jones from Young American Bank, is going to talk about credit cards today. Welcome, Miss Jones.
Miss Jones:
Credit cards are an important part of American life. Without a credit card, it's just about impossible to rent a car, make a hotel or airline reservation, or even get a membership at a video store. Credit cards are so important, yet so many people are in financial trouble because of them. So we feel education is extremely important. We want to show our customers that credit cards are not toys; they are an important responsibility. (16) When you charge something, you are agreeing to pay for your purchase at a later date. Basically, you are buying something now and paying for it later. You will get a statement in the mail each month that lists the charges you have made. You will also have to make a payment each month.
Since we're about educating our customers on the realities of credit and credit cards, we're going to be perfectly honest. First, using a credit card can be very expensive. Banks don't offer credit cards just because they like you. They offer them because they make money when customers use credit cards. (17) How do they make money? When you charge something on a credit card, you will not only have to pay for what you bought, but you will also have to pay the interest, or a finance charge, if you don't pay your bill in full by the due date. The finance charge is your extra cost for having something now and paying for it later. If you're not careful when you use a credit card, you could find yourself in a lot of debt. And it always takes much longer to pay it off than to spend it. You will also want to be careful about buying things with credit cards you wouldn't normally be able to afford. Again, you can get in over your head and end up paying a tremendous amount of interest.
However, when used correctly, credit cards can be very helpful. It's sometimes hard to do certain things without a credit card. (18) Credit cards are also helpful for emergencies and are good for travel. Some credit cards even insure your purchase, meaning if something is lost, stolen, or broken, it can be replaced. (19) We believe the best way to become responsible with credit is to learn through hands-on experience. If you begin at a young age with a low limit,you won't be likely to blow it and get in financial trouble later on. Well, thanks for listening, and have a good day.
What do we know about credit cards and cardholders?