Wensday December 12, 2012
Basic Of Credit
Four good ways to get Credit!
1) Character? are you trustworthy to make your payments
2) Capacity? How much can you have
3) Creditworthiness? What is your history like
4) Collateral? What do you have of value that we can take
1.What are the forms of credit?
Personal loans they loan you money
Credit cards a card which carries money on it
Lender an organization who lends people money
2. What costs are associated with credit?
By having money now you will be able to
Credit Bureau - company that collects information relating to the credit ratings of individuals and makes it available to credit card companies, financial institutions, and they keep watching your payments
Vocabulary that you should know
A credit score is a number based on your score the higher the better if it is between 300-800 you have good credit score
A creditworthiness is a trustworthiness with money as based on a person's credit history
A credit card is small plastic card issued by a bank, business, allowing the holder to purchase goods or services on credit and they have a limited amount of money you can use
but you have to pay that money back, there will also be interest rates add on because of the money you borrowed. Violating the contract (cardholder agreement) will result in a penalty fee.
What are the benefits and costs of using credit cards?
The benefits would be you would be able to buy things online, or stores, or gas stations. There would be a credit limit telling you how much you can spend somewhere
Where can you use credit cards?
Stores, Gas stations, Online Stores
Helpful Tips Which Can Save You
2. Only use secure browser
3. Don't max out
4. Pay more on the minimum balance
5. Keep track of what you charge
6. Pay on time
7. Never give you information out to anybody
Different types of cards you can have
This shows that you have Good Credit
A Lender giving money that you need in order to get something