credit

By: chris sandberg

What is credit? what are the forms of credit?

Credit is the ability to borrow money from a bank with the promise to pay it back.


Two forms of credit are in the form of loans and credit cards.

With credit you must pay interest fees.

What determines if some one gets credit and how much they get?

To get credit you must demonstrate your reliability to pay back loans. They also look at your credit score which is basically a history of your credit.lenders judge this by using the 3 c's of credit.

3 vocab words

Personal Loans: A loan that establishes your credit and is for personal use.


Credit Bureau: Has a record of every adults bounced checks, missed payments if sued or bankrupt.


Credit Score: A number that reflects credit worthiness and your ability to pay bills on time.

Big image

What is a credit card?

common credit cards are visa, master cards and discover. Enable you to get loans from your bank that you must pay back in full at the end of the month. You can use credit cards at most stores and restaurants. A benefit of a credit card is if you don't get paid till later you are still able to buy food and any thing else you need.

Vocabulary

1. Annual Fees: A required annual money amount you must pay

2.Credit Limit : The maximum amount of money you are allowed to spend using a credit card.

3.Interest Rate (APR): 0% to 29% pay by due date means no interest fee.

4.Penalty Fees: additional fee's due to being late, over credit.

5.Over-the-limit fee: going over credit limit.

Advice

My advice i would give to someone would be if you get a credit card set a limit on your self to not spend over a certain amount. Also do not spend money on your friends the money is not free. you get one credit use it wisely.