Credit Newsletter

-by Jaime

The Basics of Credit

● What is credit?
-Buy purchases when you want them
-Must be paid off
-Buy big purchases

● What are the forms of credit?
-Student loans
-Car loan
-Home loans
-Credit cards
-low limit cards
-student credit cards

● What costs are associated with credit?
-Apr

-monthly charges

-annual fees

-penalty fees

What determines if someone gets credit and how much they get?
-Character: are you trustworthy? will you pay debt?
-Capacity: capability to pay it back
-Collateral: what do you have to value?
-Credit Worthiness: have you paid your fees



-----------------------------------------IMPORTANT VOCABULARY--------------------------------------


Credit-The ability to obtain goods or services before payment, based on the trust that payment will be made in the future: "unlimited credit".

● Credit Score- numeric information based on your credit report

● Credit Bureau-A company that collects the credit ratings of individuals and makes them available to credit card companies, financial institutions, etc.

● Credit Report-a record of an individual's or company's past borrowing and repaying, including information about late payments and bankruptcy.

● Creditworthiness-trustworthiness with money as based on a person's credit history; a general qualification for borrowing

● Interest (APR)- Yearly cost for the money that you borrowed.

● Lender-An organization or person that lends money: "a mortgage lender"

● Credit Cards-A plastic card issued by a bank, business, etc., for the purchase of goods or services on credit.

● Personal Loans-a loan that establishes consumer credit that is granted for personal use; usually unsecured and based on the borrower's integrity and ability to pay

Vocabulary Watch

*Credit Score- numeric information based on your credit report

*Credit Report-a record of an individual's or company's past borrowing and repaying, including information about late payments and


*Creditworthiness-trustworthiness with money as based on a person's credit history; a general qualification for borrowing

*Personal Loans-a loan that establishes consumer credit that is granted for personal use; usually unsecured and based on the borrower's integrity and ability to pay

What You Need To Know

● What is a credit card?
-A plastic card issued by a bank, business, etc., for the purchase of goods or services on credit.
● Where can you use credit cards?
-anywhere it is accepted
● What are the benefits and costs of using credit cards?
-Can build successful credit

More imortant vocubulary-
● Annual Fees- fee you pay every year for using the card
● Credit Limit- total amount of money that you are allowed to borrow
● Interest Rate (APR)-yearly cost for money that you borrowed
● Penalty Fees- charges you must pay
● Over-the-limit fee- you go over your limit that is on your card

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

-don't buy things you can't buy within 25 days
-read the fine print
-buy things you need really need not what you really want
-check credit report at least once a year
-sign your credit card as soon as you you get it
-don’t share account info
-pay more the minimum balance
-use secure browser when shopping online
-keep track of what you charge
-pay on time motherfucker