Credit Project

Everything you need to know about credit.

Basics of credit

In order to establish good credit you must pay your credit card payments punctually so that you don’t get charged with a late penalty fees.
Your credit score goes up when you pay your personal loans on time!!! Your Interest (APR) goes up if you have bad credit. You can get a credit report once a year for free to check your credit worthiness if you want more than one you can pay to get another one. If you have well established credit you can get a lender to loan you money. The credit bureau will help banks to decide if you qualify for a loan.

Vocabulary Watch

Annual Fees: Fees that that are charged on an annual (yearly) basis.
Credit Limit: The amount of credit that a financial institution extends to a client.
Interest Rate (APR): The percentage and amount that determines the yearly cost of credit.
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 typically ranges from $29 to $39.

Great tips on credit

What is Credit? Loans, Mortgages and Overdrafts explained (Credit Made Clearer -- Capital One)

Questions?

Not sure about credit?

What is credit?
What are the forms of credit?
What costs are associated with credit?
What determines if someone gets credit and how much they get?


Credit is the ability of a consumer to buy goods before payments based on the trust that the payment will be paid in the future
Forms of credit are instalment credit, Revolving credit, and open credit
The cost associated with credit is that you can ruin your credit if you’re not responsible with it.

Q's

What is a credit card?

Where can you use a credit card?

What are the benefits and costs of using a credit card?


A plastic card used to buy goods that you will pay later on.

At restaurants, stores, movie theatres just about anywhere your card is accepted.

The benefits of using credit cards are building credit, managing your expenses, and getting cash back.