Julissa Reyes

Basic Of Credit

● What is credit? "buy now pay later"
● What are the forms of credit?
  • student
  • prepaid
  • secured etc...
● What costs are associated with credit? you have to pay interest along with the amount you owe and an annual fee.
● What determines if someone gets credit and how much they get?

assets, income, liability

the value of what you own. your financial ability to pay it back. income. financial responsibility. dependability. steady job and residence.
● Credit- the ability to borrow money in return to promise of future payments
● Credit Score- number assigned depending on all your history of payments that depend on future loans you might want to get
● Credit Bureau- collects info on consumers credit and sells it. credit rating number that reflects worthiness and if you are able to pay your bills on time.
● Credit Report- you can see any open cards, fees, late fees, amount paid, owed and even the credit score you are able to get one once a year for free
● Creditworthiness- how likely you are yo pay on time the loans
● Interest (APR)- yearly percentage cost for the money that you borrow that vary extra money on the money you have to pay back
● Lender- an individual or group that provides cash or credit to a borrower that will be paid back.
● Credit Cards- good way to start for getting credit depending if you pay the bills on time
● Personal Loans- loan used for a personal use mostly based on the borrower.

Section 2: section reading terms

Collateral- property that is pledged to be able to be taken back

Character- measure of sense of financial stability

Capacity- measure of financial ability to pay back loan

Capital- value of what you own

Credit History- payments, amount, and late fees from up tp 5 years ago that can effect your credit score in a bad way.

Regular charge account- you pay balance in full amount can't go from month to month

Unsecured Loans- not backed by collateral higher rates paid but don't have a specific date to be paid by

Secured Loans- backed by collateral specific date payment must be issued

Installment Loans- fixed amount of money that must be paid over a given amount of time

Section 3: Credit Cards: What You Need to Know In this section, you should discuss the basics of credit cards.

● What is a credit card?

a way to make big purchases without having to pay real fast

● Where can you use credit cards?

just about anywhere now a days you can use credit cards
● What are the benefits and costs of using credit cards?

it allows people to make more purchases that provides more jobs for workers. you have to pay annual fee and interest rate and if you pass the cards limit or don't pay on time or the entire amount you will get an extra amount to fee that
● Annual Fees- annual amount you must pay every year $15-$100
● Credit Limit- the max amount of money you can spend using the card
● Interest Rate (APR)- 0%-29% added onto payment if you fail to pay entire amount of money owed
● Penalty Fees- Additional fee due to late payment, over credit limit, returned payment that could also result in an increase in interest rate
● Over-the-limit fee- going over the credit limit

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

ways to stay safe while using credit cards (i.e.
tips you would give someone when using credit cards).
  • safe browsers
  • sign card
  • dont share info
  • careful wireless connection
  • pay more than your minimum balance
  • dont max out
  • only necessities
  • keep track of what you charge
  • always pay on time