THE BASICS OF CREDIT
-What is Credit?
- Credit is confidence in a borrower's ability and intend to repay
-Forms of Credit?
- Installment Credit- Used to borrow money and promise to repay in equal amounts over a specific amount of time
- Revolving Credit- Credit that allows you to borrow a pre-established amount over and over as long as you have an account. You pay the amount you borrowed in full or make partial payment that is subject to interest and/or fees.
- Open Credit- Requires that all money borrowed must be repaid in full every month
What Costs Are Associated With Credit?
- Your credit score on your credit report can bring down your credit worthiness
What Determines If Someone Gets Credit? And How Much They Get?
- Credit reports determine if someone can get credit or not
- What your credit score and creditworthiness can determine how much they get
- Lender-A lender may reduce the actual amount of the closing costs by a credit in order to offer more competitive fees
- Credit Score- is a numerical expression based on a statistical analysis of a person's credit files, to represent the creditworthiness of that person. A credit score is primarily based on credit report information typically sourced from credit bureau.
- Credit Card- is a payment card issue to users as a system of payment. It allows the cardholder to pay for goods and services based on the holder's promise to pay for them.
-What is a credit card?
- A credit card allows you to borrow money from your bank to make your purchases, whether you’re buying a burger or a round-trip ticket to France. As long as you pay back the money you borrowed within the a certain period of time, you don’t have to pay anything extra.
Ways to Stay Safe While Using Credit Cards
- Pay all your bills
- Don't always just swipe
- Make sure where you are swiping is legit
- Be careful of identity theft