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-


Vocabulary Watch

Credit Cards- A plastic card issued by a bank, business, etc., for the purchase of goods or services on credit.

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

Smart Consumers: Don’t Fall Into the Credit Card Trap

You should use the credit card for emergency. Use it on a big purchase don't waste it on something small. Don't use it unless its for necessary things because the money could be use up fast. Check your card to make sure the amount of money was used up correctly, and make sure nobody else uses it without your permission.