Know about Credit!!!!

Sandra Carrera period 3

Section:1 The Basics of Credit

Credit is the ability to borrow money from someone and promise future payments. Loans can be and example of a credit. Credits are never free. People must pay interest (annual percent rate).

Credit- The ability to obtain goods or service with before payments.

Credit score- It is the persons past credit.

Credit Bureau- Company that collects the credit ratings of individuals and makes it available to credit card companies.

Credit Report- A record of an individual's or company's past borrowing and also repaying.

Interest- The charge of the privileged of borrowing money.

Lender- An organization or person that lends money.

Credit Cards- A plastic card used to buy goods or service.

Personal Loans- A loan that establishes consumers credit.

Big image

Section:2 Vocabulary Watch

Credit Rating (Score)- an estimate of the ability to fulfill financial commitments, based on previous dealings

Premium- an amount to be paid for an insurance policy.

Creditworthiness-trustworthiness with money as based on a person’s credit history, general qualification for borrowing.

Big image

Section: 3 Credit Cards What you Need to Know!!

What is a credit card? It's a payment card used as a system of payment.

You should use a credit card to apply credit. For some payments that need to be made. Don't over do it when using a credit card. There are credit limits on credit card use. People will get a penalty fee if they commit any violation with their credit. People have to be careful on how they use it and on what. Consumers will be charged a percent of interest rate for the sum of money use. The benefits of using a credit card is that it gives you credit and that is a good thing for you because the better and the more credit the better. If you are a person that goes over your balance on credit card you will get and over time fee.

Section:4 Smart Consumers: Don't Fall Into the Credit Card Trap!

A way to keep your credit safe will be to never leave it around where someone could grab it or take your card number.

Never over do it with credit cards because it will affect you and will be charged with a fee.

Make sure your the only one using your credit card and someone else. Never give the card number through the phone.

Big image