Credit Newsletter

Anthony Rubio

The Basics of Credit

Q: What is credit?

A: The ability to borrow money in return for a promise of future payment


Q: What costs are associated with credit?

A: House, car, and school loans.


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

A: The financial ability to pay off debt on time and financial responsibility.


Credit- The ability to borrow money in return for a promise of future payment

Credit Score- Number that reflects your creditworthiness

Credit Bureau- A bureau that has a record of every adult

Creditworthiness- Character, Capacity, and Capital

APR- Annual Percentage Rate

Lender- Someone who can provide you with a loan

Personal loans- Loans for personal needs.

Important vocab! :D

Credit- The ability to borrow money in return for a promise of future payment

Credit Score- Number that reflects your creditworthiness

Credit Bureau- A bureau that has a record of every adult

Creditworthiness- Character, Capacity, and Capital

APR- Annual Percentage Rate

Credit cards: What you need to know

Q: What is a credit card?

A: A plastic card issued by a bank, business. For the purchase of goods or services on credit.


Q: Where can you use a credit card?

A: Anywhere a Credit Card is Accepted.


Q: What are the benefits and costs of using a credit card?

A: Cost: If you're not careful, you can be deep into debt. Benefit: It can help you pay for something you can't afford (Gotta pay it off of course)


Annual fees- A yearly fee charged by credit grantors for the privilege of using a credit card.

Credit limit- The max amount of credit you are granted.

APR- Annual Percentage Rate, The rate your interest is.

Penalty fees- Fees charged if you violate the terms of your cardholder agreement or other requirements related to your account.

Over-the-limit fee- A fee for going over the credit limit.

Smart Consumers: Don't fall into the credit card trap

Choose a credit card with the most benefits and the least expensive.