Credit Cards

Section : 1 The Basics Of Credit

What is credit? Credit is the ability to borrow money in return for a promise of future payment. For example buy something and then you could pay it later. Credit Bureau is a private firm that maintains consumer credit data files and provides credit information to authorized users for a fee. Creditworthiness is a way of having a satisfy factory of a credit rating. A Credit Card is a card that identifies a person as entitled to have food, merchandise, and services. Interest Rate is from 0% up to 29%, if you pay the entire balance by the due date there will be no interest at all.


Section : 2 Vocabulary Match

Annual Percentage Rate- The annual equivalent of a rate of interest when the rate is quoted more frequently than annually, usually monthly. Capacity- The ability to receive or contain. Capital- The wealth, whether in money or property. Character- one such feature or trait. Collateral- A relative descended from the stock, but in a different line. Credit Limit- A certain amount of credit that is limited. Credit Rating- A classification of credit risk based on investigation of a customer financial resource. Claim- to demand by or as by virtue. Co-Pay- a small fixed amount required by a health insure to be paid by the insured for each outpatient. Coverage- the extent to which something is covered. Deductible- capable of being deducted. Liability- Money that is owed. Policy- A definite course of action adopted for the sake of expediency. Premium- A sum above the nominal or par value of a thing.

Section : 3 Credit Cards : What You Need To Know

What is a Credit Card? A Credit Card is a card that identifies a person as entitled to have food, merchandise, and services. You may use and buy anything you may want with a Credit Card, just as long as you make you payments each time your bills are due. You may want to avoid too many credit or in general too many cards. Don't miss any payments on your credit card and want to make sure the you read what you sign before you sign because that could avoid theft and seeking of credit card. A required annual money amount most be payed, it may be from $15.00 to $100.00 dollars. The Credit Limits is of any amount you want to max out on or spend using your credit card. The Interest Rate is from 0% up to 29%, if you pay the entire balance by the due date there will be no interest at all. The penalty fees may add up an additional fee to late payment and may cost you an over credit limit. Going over the limit may result in an increase of interest rate if you don't watch out.

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

Tips of ways staying safe while using your credit cards are by Always signing your card as soon as you receive it, Never keep your PIN code with your card because that could be bad. Be careful when you use your card in public don’t let anyone see the account number you can never trust anybody. Don’t give out your account number over the phone unless you made the call to your bank or a merchant you know and trust. Never respond to e-mails that ask for your account number sneaky people may get access to your money. If you move, notify your credit card issuer so your statement will be sent to your new address. Shop with established businesses that you can contact easily to resolve problems. Don’t share personal information unless you absolutely have to and you know how it will be used. Check refund and return policies, shipping costs and guidelines, and payment terms. Print or keep electronic copies of receipts, including confirmation numbers and e-mails.Keep passwords secret never share them, and never keep them near your card, Use both numbers and letters in passwords, Avoid using names, birthdays or anniversaries in passwords.