The Basics of Credit
Tram Bui, Period: 1
The 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? Loans & Credit Card
● What costs are associated with credit?
● What determines if someone gets credit and how much they get? A person's credit score is important, because it determines their eligibility for all kinds of financial endeavors, such as credit cards and home loans
● 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 credit score is a numerical summary of the information contained in your credit report
● Credit Bureau-A company that collects the credit ratings of individuals and makes them available to credit card companies, financial institutions, etc
● Credit Report- Credit history or credit report is, in many countries, a record of an individual's or company's past borrowing and repaying
● 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: "many people lose interest in history
● Lender- An organization or person that lends money: "a mortgage lender"
● Credit Cards- A plastic card issued by a bank, business, etc., for the purchase of goods or services on credit.
● Personal Loans-
Credit Score- A credit score is a numerical summary of the information contained in your credit report
Credit- The ability to obtain goods or services before payment, based on the trust that payment will be made in the future
Credit Cards: 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
● Where can you use credit cards? Anytime you buy anything
● What are the benefits and costs of using credit cards? They take the money from your card out of the bank.
● Annual Fees- A yearly fee charged by credit grantors for the privilege of using a credit card.
● Credit Limit- A credit limit is the maximum amount of credit that a financial institution or other lender will extend to a debtor for a particular
● Interest Rate (APR)- the percentage of a sum of money charged for its use
● Penalty Fees- Fees charged if you violate the terms of your cardholder agreement or other requirements related to your account.
● Over-the-limit fee- For each month that their balance exceeds their loan limit, borrowers are charged this type of fee, which typical