Credit Newsletter
Kim De Villa Period 9
The Basics of Credit
Credit is the ability to borrow money in return to be paying it off in the future. Once you own a credit card you can start having a credit score which tells you whether or not you have good or bad credit. A credit report is your history of paying bills, like a summary of everything. The credit bureau is a company that collects an individuals credit ratings.
What are the forms of credit?
There is two types of credit one would be credit cards which is a plastic card that allows you to pay for the items you want to purchase. A personal loan is a loan that a consumer is granted for personal use.
What cost are associated with credit?
The costs that are associated with credit is interest (APR).
To determine ones creditworthiness which shows how trusted you are to be paying bills on time. A lender is a person that determines/judges someone else three "c's".
Vocabulary Watch
Credit History
A record of a person's or business of borrowing and repaying loans.
Credit Rating
An estimate of the ability to fulfill financial commitments, based on previous dealings
Credit Bureau
A company that collects the credit ratings of individuals and makes them available to credit card companies, financial institutions and others.
Credit Cards: What You Need to Know
A credit card is a plastic card that you can use to pay for things instead of using cash. Every time you receive a credit card there is something called a credit limit that limits you on your spending's. If you were to go over that limit you would have to pay extra and that is called over-the-limit fee. With every credit card you are required to pay an annual fee for having the card.
Where can you use credit cards?
Credit cards are pretty much accepted at any place. Once you swipe your card you can be penalized by a fee if you do not pay on time such as a penalty fee.
What are the benefits and costs of using credit cards?
The benefits are that you do not have to carry around money or lose change. you do not have to worry about someone else using it just as long as you cancel it when you have lost it. When you pay the bills on time you will not be charged with an interest rate. If you do not pay by the date you will have to pay that interest rate.