10 Key Facts About Credit Cards
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Transcript of 10 Key Facts About Credit Cards
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7 21 2015
Instructional Media
Center
10 Key Facts about Credit Cards
5464 1234 5678 9001
RINGGOLD P. ATIENZA Date:
Misamis University
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Philippines
INTEREST RATES AROUND THE WORLD
42%
13%
34%
15%
25%
18%
Malaysia
USA
Hongkong
China
Singapore
Fact
#
1
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Fact
#
2
Credit cards stimulates spending
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=More More
EXPENSE
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Fact
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Credit cards facilitates debt like no other else
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1 OUT OF 10
FILIPINOSDEFAULT
On Their
Fact
#
4
DEBT
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is 3X higher
to other Asian countries
compared default rate
Our
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How can we minimize ourcredit card fees?
Shop around for the best dealAvoid cash advancesPay your debt by the due dateAs much as possible, pay in full
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Majority of cardholders in
Ozamiz City
do not pay in full
Fact
#
5
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Paying only the minimum amount can take a decade
Fact
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How long does it take to pay offyour credit card?
If you only pay the minimum
PHP10,000
2 years and 11 monthsTOTAL INTEREST: PHP 7,500
PHP50,000
11 years and 8 monthsTOTAL INTEREST: PHP 100,546
PHP100,000
15 years and 8 monthsTOTAL INTEREST: PHP 217,498
Assuming we use 3.5 interest rate and 5% or 500 minimum payment
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One Decadewould be?
If you only pay the minimum
PHP25,000TOTAL INTEREST: PHP 47,987
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Which two demographic
typesare the most likely to become
risky cardholders
?
Fact
#
7
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1
2
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Fact
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8
Credit card debt was reported to be one of the highest stressor that could lead to lower psychological being
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Fact
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9
Credit card companies make money in four ways
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How do credit companies make money?
Fees1 a. Annual fee (P600 to P5,000)b. Cash advance fee (1% to 6%)c. Late payment fee (3.9% to 7.5%)d. Excess limit fee (P120 to P500)e. Varying fee for card replacement
2 Interest on Outstanding Balancea. 2% to 3.5%
3Transaction fee (Charge to merchant)a. 1% to 5.0%
4Customer list monetizationa. e.g. rent / sale of mailing list
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Fact
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Regulatory environment for credit cards needs a lot of improvement
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Global Information Technology Report 2013
Regulatory environment index
ID MY PH SG TH VN
82
24
98
1
81 85
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