Ever Reyes pd. 2
Basics of Credit
credit is what allows you to buy things, mainly anything you want, and lets you pay it off in payments.
What are the forms of credit?
forms of credit are anything from loans to paying bills.
What costs are associated with the credit?
costs associated with credit is that if you fall behind on any payments you are going to be in a lot of debt.
What determines if someone gets credit and how much they get?
The thing that determines it is how good you have been paying your bill sometimes in the past five years. Also if they have been paid on time the bill was due.
Defining Key Terms:
Credit- what allows you to buy things, mainly anything you want, and lets you pay it off in payments.
Credit Score-computer calculates and gives a score on points earned in a checking account and the higher the number the better
Credit Bureau- A company that collects the credit ratings of individuals and makes them available to credit card companies, financial institutions
Credit Report- Credit history or credit report is, in many countries, a record of an individual's or company's past borrowing and repaying
Credit Worthiness- how likely you are going to repay, they see bills and time they are paid collateral
Interests (APR)- how much payment goes up if you don't pay on time
Lender- An organization or person that lends money
Credit Cards- card 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
Loans- when a lender lets you borrow money
Withdrawing- taking money out of your account
Checking Account- lets you put every payment in order and you can see bills that have to be paid
Credit Cards: What You Need To Know
What is a credit Card?
a plastic card that allows you to make big buyings but lets you pay it off in payments
Where can you use Credit Cards?
where there is going to be a lot of money being spent or to pay bills
What are the benefits and costs of using Credit Cards?
benefits is that you can buy really expensive things and the cost is that it can make you get in a lot of debt if you are behind in payments.
Annual Fees- a yearly fee charged by credit granters for using and having a credit card
Credit Limits- maximum amount of credit that a financial institution or other lender will extend to a debtor
Interests Rates (APR)- how much payment goes up if you don't pay on time
Penalty Fees-Fees charged if you violate the terms of your cardholder agreement or other requirements related to your account
Over-the-Limit fee- charge payment that is not receive on time
- sign credit card when you get it
- always pay on time
- pay more then minimum balance
- use credit for necessities
- keep track of what u charge