Credit Newsletter

Basics of Credit

-what is credit? The ability to obtain goods or services before payment, based on the trust that payment will be made in the future

-What are the forms of credit? installment credit, revolving credit, open credit

-what costs are associated with credit? you must pay interest

-What determines if someone gets credit and how much they get? they determine using the 3 C's, character,capacity, capital

● Credit-The ability to obtain goods or services before payment, based on the trust that payment will be made in the future
● Credit Score-a number based on your credit report
● Credit Bureau-a firm that investigates the creditworthiness of and assigns a creditrating to a client's customers or potential customers.
● Credit Report-credit information
● Creditworthiness-character, capacity, capital
● Interest (APR)-A charge for a loan, usually a percentage of the amount loaned.
● Lender-To provide (money) temporarily on condition that the amount borrowed be returned, usually with an interest fee.
● Credit Cards-money in a card
● Personal Loans- personally lending money

Credit Card

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Common cards: VISA, MasterCard, Discover, AMEX

• Incentives: cash back, points, airline miles

Regular charge accounts


What is a credit card? a plastic card issued by a bank or buisness
Where can you use credit cards? almost everywhere
What are the benefits and costs of using credit cards? benefits that it helps built up your credit and you get reward points. but if not used properly itcould put you in serious debt.


vocab:

Annual Fees-any fee that is charged on a yearly basis.

Credit Limit-maximum amount of money a borrower can charge

Interest Rate (APR)-The annualized cost of credit or debt-capital computed as the percentage ratio of interest to the principal.

Penalty Fees-penalty charged for withdrawals of invested funds by the investor before a specified period

Over-the-limit fee-fee charged when the borrower borrows more money than allowed.

Smart Consumers

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-sign credit card
-dont share info
-use secure browser
-careful on internet connection
-pay more than minimum balance
-dont max out
-keep track of what u charge