Basic of Credit

By Aindani Tun Consumer Education Period 9

Credit types and Basics

1.What is credit?

The ability to obtain goods or services before payment, based on the trust that payment will be made in the future: "unlimited credit
2.What are the forms of credit?

are the Installment Loans, Credit Cards,Merchant Charge Cards and Lines of Credit also Mortgages.

3.What costs are associated with credit?
However, there are often annual fees, application fees or late fees that apply, the details of which have to be revealed to the applicant.

4.What determines if someone gets credit and how much they get?

A person's credit score is extremely important, as it determines his or her eligibility for all kinds of financial endeavors, such as credit cards and home loans.

Credit Cards: What You Need to Know

1. What is a credit card?
A plastic card issued by a bank, business, etc., for the purchase of goods or services on credit.
2.Where can you use credit cards?
With credit cards you can buy things, withdraw money from an ATM and make balance transfers. Different rates of interest may apply to these different types of transactions
3.What are the benefits and costs of using credit cards?
the benefits are Cash back, Merchant-specific programs, Travel, Merchandise and gift cards and Experiences.

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

ways to stay safe while using credit cards (i.e. tips you would give someone when using credit cards). if it is online shopping these are the way to avoid and keping your credit card safe
The ways to keep your card safe is Keep your wallet safe, don't talk to strangers and stick to places you know and trust.

Avoid using debit cards online
Consider using a virtual or 'disposable' credit card number

Don't store your card information on the website

Understand what information sites need -- and what they don't

Think twice about buying via WiFi
Actively seek security

Stick to respected card issuers and vendors that treat you well
Be careful with those URLs