Credit Information

Sarina Rashid Period 10

What Is Credit?

Credit is the ability to borrow money in return for a promise of payment later.

What are forms of credit?

  • Credit Cards
  • Loans
  • Advanced Payments

What Costs Are Associated With Credit?

  • Credit is NOT free
  • You must pay an annual rate of interest

What Determines If Someone Gets Credit and How Much They Get?

To get credit you must establish creditworthiness by:

  • Capital
- Value Of What You Own

- Savings, Investments, and Propriety

- Use Capital To Pay A Loan If Needed

  • Capacity
- Financial Ability To Pay A Loan Back

- High Enough Income

- Major expenses & Debt

  • Character
- Sense Of Financial Responsibility

- Dependability

- Steady Job

- Long Term Of Residency

What is a Credit Score?

It is a number that shows how well your credit is. The higher the number the better it is.

What is the Credit Bureau?

A company that collects info on consumers credit and sells it to other companies.

What are credit cards?

Pieces of plastics that allow you to temporally borrow money from credit card companies.

They give intensives like cash back, air plane miles, and points.

You can use a credit card almost everywhere:

Stores, restaurants, and salons among other places.

But there are fees that come with credit cards:

  • Required annual amount of money you must pay
  • If you don't pay the entire balance back by it due date there could be interest from 0% - 29%
  • All credit crads have a credit limit
  • If you spend past the limit amount you have to pay a over-the-limit-fee
  • If you pay the bill late you have to pay a fee
  • All of these things could increase your interest rate

How To Stay Safe When Using A Credit Card

  • Consider a loan instead of using a credit card
  • Pay your credit card balance in full
  • Choose the card that was the least expensive and the greatest awards
  • Avoid having to many cards
  • Pay in cash for most things