- The Ability to borrow money for a promise of a return of a future payment. This Can affect your credit score. The Credit Bureau account everything from missed payments for late payments. They make a Credit report on everything you do.
Forms of credit
- Credit Cards
- Installment Loans
Cost Associated with Credit
- Cost Associated with credit is Interest. You must pay interest.
What Determines if how much credit someone gets.
- Depends on your creditworthiness.
- Lenders judge Character, Capacity, and Capital.
Important Vocab Words
Character- The quality of an individual
Capital- The excess of a company's assets over its liabilities
What is a credit Card
- A a loan you take from a bank by swiping a card
- But there is a credit limit, which is the amount the bank lets you borrow.
Where can you use credit cards
- You can use credit cards anywhere
What are the benefits and costs of using a credit card
- Some benefits are that while using a credit card you don't need any cash.
- Costs are Annual fees, interest, over-the-limit fees, there are many costs of having a credit card
Safe ways to use credit cards
- Do not use credit for everything.
- Use credit only for emergency
- Do not fall for credit card traps and sign up for so many credit cards