Are you careful with your credit?
Tatyana Cruz and Linda Hernandez and Alex Lopez
The Basics of Credit
What is credit?
What are the forms of credit?
-loans: let you borrow money that must be repaid with interest. You can obtain a loan for a specific purpose, such as financing a new car, paying college tuition and buying or renovating a home.
A personal loan establishes consumer credit that is granted for personal use.
Secured loans are guaranteed by collateral, which is an item of equal or greater value than the amount
of the loan, such as a car, home or cash deposit.
Unsecured loans do not require collateral and are made based on your credit score and ability to repay.
-Installment loans:are made for a fixed amount at the time of your application and approval. This type of loan is repaid in fixed monthly payments over a specific period of time. The interest charges are included in the payments.
-credit cards: are perhaps the most common type of personal credit. Unlike installment loans, credit cards allow repeated transactions up to a maximum credit limit, also known as your available credit limit. Each time you charge something, you are borrowing the money until you pay it back.
What costs are associated with credit?
What determines if someone gets credit and how much they get?
Annual or annualized percentage rate, typically of interest on loans or credit.
An organization or person that lends money.
A number assigned to a person that indicates to lenders their capacity to repay a loan.
Smart Consumers: Don't Fall into Credit Card Trap
- Get a card that has added security features, like a photo ID.
- Draw a line through blank on charge slips above the total to prevent any changes.
- Save Receipts
- Carry on the cards you need, especially when traveling.
- Never lend your card to anyone, and don't leave cards or receipts lying around your room, no matter where you live.
Credit Card: What you need to know
What is a credit card?
-A plastic card issued by a bank, business, etc., for the purchase of goods or services on credit. the bank sets you a CREDIT LIMIT, and gives you an INTEREST RATE on the money you borrowed.
Where can you use credit cards?
-Credit cards are very commonly accepted everywhere. most stores, malls, restaurants.What are the benefits and costs of using credit cards?
-When having a credit card you get an ANNUAL FEE, If you go over your limit you may have a OVER THE LIMIT FEE which is a PENALTY FEE. Penalty fees are also applied when you don't pay on time or etc.