Credit Cards

Be smart

Section 1: The Basics of Credit

What is Credit?- Credit makes big purchases possible.

What are the forms of credit?- Personal credits, Credit Cards, and Student Credit.

What costs are associated with credit? The cost are to many.

What determines if someone gets credit and how much they get? Don't spend more than necessary. should only borrow what you can pay back.

This are the 4 C's

character - honest, trustworthy, you have a job or paying job.
capacity- how stable is your job.
creditworthiness- Is a measure of your reliability to repay a loan
collateral- they will take what you have of value.

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

Credit Score- number based on your credit report history. stays with you forever!
Credit Bureau - is a company that collects information about consumers’ credit history and sells it to lenders.

Credit Report- you can get 1 free credit report

www.alerts.equifax.com www.experian.com/fraud www.transuion.com www.annualcreditreport.com

Interest (APR) - when you don’t pay your dues and your interest grows as you let the dues passed by.
Lender- To give money on condition that it is returned and that interest is paid for its temporay use
Credit Cards - are good way to start to establesd credit.

Personal Loans- are personal money you borrow from the bank for personal things.

Section 2: Vocabulary Watch

Credit Limit - Is important because is the maximum amount of how much money the customer can use.

Credit History - Is important because if you have a bad credit history it will follow you for a long time and you won't be able to get any student loans or car loans or any other loans you might need in the future.

Character- is important because you need good background. For example need to be honest, trustworthy because they check that too.


Section 3: Credit Cards: What You Need to Know

What is a credit card? A plastic card issued by a bank or business for the purchase pf goods or services on credit.

Where can you use credit cards? accepted by stores, restaurants, gas stations and online shops.

What are the benefits and costs of using credit cards? you can build up credit for any loans and the cost of using credit cards are dangerous.

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

Credit Limit - only waste what you can owe! the total amount of money you are allowed to borrow.

Interest Rate (APR)- Year cost for the money that you borrowed and your late APR goes up
Penalty Fees- late, annual fee charge to much and they add up to the money you owned.

Over-the-limit fee - This is the fee applied when the credit limit is exceeded.

Section 4: Smart Consumers: Don’t Fall Into the Credit Card Trap

Smart Tips:

Only buy things you can pay back

Know what you are signing

Take control about financial

Keep your personal information save

Don't share information

Keep track of what you charge

always paid on time