Your Credit

Ryan Widmaier Period 9

Basics of Credit

● What is credit?

Credit is when lenders give you money to purchase you item.

● What are the forms of credit?

Personal loans and credit cards

● What costs are associated with credit?

Interest and what ever the item costed in the first place.

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

The lender gets your credit report from the credit bureau and looks at your credit score to determine your credit worthiness.

Vocabulary Watch

  • Credit score
The score that determines your credit worthiness. ( Score is between 300 - 850) The higher the score the better.
  • Interest
How much extra you have to pay when repaying a loan.
  • Credit report
The report on how you are with your bills also contains your credit score.

Credit Cards: What you need to know

  • What is a credit card?

A piece of plastic that you carry around to use in the form of money

  • Where can you use credit cards?

You can use credit cards almost anywhere even some places that you can't use cash like online.

  • What are the benefits and costs of using credit cards?

Some benefits of using credit cards are you can buy what you need now and pay it back later. It costs you a little extra due to interest on your purchase.

How to Stay Safe

  • Limit the number of credit cards you have
  • Make payments on time
  • Don't use it on sketchy websites
  • Don't apply for them even if they don't give you a card