Credit Newsletter

Anna Jureczko

Section 1: The Basics of Credit

● What is credit?

A credit the ability to obtain goods or services before payment, based on the trust that payment will be made in the future to the lender.

● What are the forms of credit?

Loans and Credit Card are the two forms of credit you can have. Loans on things such as your house, car and school.

● What costs are associated with credit?

Some costs that are associated with credit is having a Credit Bureau, which is a company that collects information relating to the credit ratings of individuals and makes it available to credit card companies, financial institutions, etc. Credit Report a record of an individual's or company's past borrowing and repaying, including information about late payments and bankruptcy. How a bad credit also affects your creditworthiness which is trustworthiness with money as based on a person's credit history. Because of all these unexpected things you won't be able to receive a Personal Loan from the bank on things you soon will need in life as you grow up. If you don't keep a good credit score your interest will increase because the person lending you the money won't have as much confidence in you giving it back.

● What determines if someone gets credit and how much they get?

In order to receive credit, someone's credit score must be good, their credit score is based on the choices they have made in their life. They open up a credit card and go from there, based on whether their payments are paid in full and on time.

Section 2: Vocabulary Watch

● Credit

-The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future

● Credit Score

-A number assigned to a person that indicates to lenders their capacity to repay a loan

● Credit Bureau

-A company that collects information relating to the credit ratings of individuals and makes it available to credit card companies, financial institutions, etc

● Credit Report

- A record of an individual's or company's past borrowing and repaying, including information about late payments and bankruptcy.

● Creditworthiness

-Trustworthiness with money as based on a person's credit history; a general qualification for borrowing

● Interest (APR)

-The state of wanting to know or learn about something or someone

● Lender

-An organization or person that lends money

● Credit Cards

-A small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit

● Personal Loans

-A loan that establishes consumer credit that is granted for personal use; usually unsecured and based on the borrower's integrity and ability to pay

Section 3: Credit Cards: What You Need to Know

● What is a credit card?

A card where you can charge anything on because there is no limit unless you request one. If you show them you can pay what you own the rise the price and learn to trust you.

● Where can you use credit cards?

A bank, a store anywhere actually.

● What are the benefits and costs of using credit cards?

The benefits are that you can buy anything you want whenever you want, the costs are that you have to pay back in full by a certain time.

Section 4: Smart Consumers: Don’t Fall Into the Credit Card

  • Don't believe EVERYTHING everyone says!
  • Be smart about your choices
  • Unless you can pay it in full within 25 days, DON'T BUY IT!
  • Don't have a lot of credit cards
  • Talk to someone if you don't understand the process of owning a card
  • Set yourself a limit.

Be SMART when getting a credit card!