Demonstrative Speech

Debra Frias

Dr. Woodall

Speech #1 Informative speech Outline

                           How to choose a credit card

1. INTRODUCTION

1. Credit cards could be a huge help or a huge mistake in your financial life, it all depends on what credit card you choose and how you use it. How many of us here understand the terms and conditions of credit card? Well, I do now. But I learned the hard way. Five years ago I got my first credit card offer in the mail. Pretty exciting, right? Who wouldn’t like to be able to buy whatever they want whenever they want it at the expense of the credit card company? At least that is what I thought. So I decided to accept the credit card offer, and let me tell you it wasn’t what I thought. Getting a credit card without understanding how credit cards work is not smart and it could hurt your financial future for several years. Hopefully tonight I can help you avoid some of the mistakes that I made.

1. I’m going to talk about how to choose the best credit card.

1. Because I went through the pain of paying late fees, high interest rates and feeling cheated that my good credit card deal wasn’t as good as I thought it was, I educated myself on credit cards and money management by reading books, and articles written by financial advisors.

1. Tonight I’m going to talk about credit card interest rates and fees, different types of credit card rewards, and credit card holder benefits.

First I’m going to explain to you what interest rates and fees are.

II. BODY

1. Credit card APR or annual interest rates and fees vary based on your credit score. An APR is a percentage number that represents the yearly cost of borrowed funds over a time period. According to Investopedia.com, by law credit card companies and loan issuers must show customers the APR to facilitate a clear understanding of the actual rates applicable to their agreements.

I) Financial institutions use this as a tool to determine how trustworthy you will be in repaying the money they loan you.

a) The higher the credit scores the more trustworthy you appear. The lower the credit score the less dependable you appear. Credit card interest rates are literally the way credit cards companies make their money.

        2) Some credit card companies charge you a fee in order to use their credit card.

a) If you have a low credit score the credit card company could charge you a fee for the privilege of using their card. However, if you have a high credit score the fee goes towards the great benefits that the card would offer.

        Now that we have a better understanding about credit cards interest rates and fees, let’s go over some of the rewards that some credit card companies offer.

B) Credit cards companies offer different types of rewards for using their card depending on the type of credit card you choose.