What to know about Credit!!!

Credit newsletter

Questions about Credit

Section 1: The basics of Credit

What is credit?

  • Credit is not free money. It makes buying easy when you want and what you want. It is good for big purchases. It can affect many things and it can be powerful.

Credit score: Is a number based off the credit report. it adds up the points the higher the number the better from 300-800. this can affect a loan as in mortgage a car or college loans. Bad credit scores can affect jobs.Under Credit scores can add up by not paying things being late ect.
You can be denied a loan if had poor credit score.

What are the forms of credit?
  • Home loans, car loans, student loans, and personal loans.

What costs are associated with credit?
  • There are often late fees, application fees or other fees associated with credit.

Credit Bureau: A company that collects information relating to the credit ratings of individuals and makes it available to credit card companies, financial institutions, etc

A Lender: the company that gives you and handles the credit cards. Ex: chase visa ect.

What determines if someone gets credit and how much they get?
  • Someone that is allowed credit should have a steady paying job. How much credit you get is determined on how many late fees you have. They look at if you are reliable and honest. Credit is a privilege when they consider a person trustworthy. Creditworthiness: what's your history. Do you pay your bills on time.

Section 3: What to Know

What are Credit Cards?
  • A small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit. They can be used for home loans, car loans, student loans, ect. Also credit cards from the banks. If you are paying off the credit card every month thats how you get good credit.

Where can you use credit cards?
  • They can be used for anything but mostly are used for big payments that you can pay off over time.

Not all credit cards are created equal, lower limit credit cards are aimed for younger

people. Not everyone can use these things but it can keep a handle on your spendings.

What is the annual percentage rate: the yearly cost for the money that you borrowed.

Late on payments your apr goes up. CC companies are waiting for you to mess up.

What are the benefits and costs of using credit cards?
  • Credit Cards are a benefit in that they are convenient when you need something big and you can’t have the money up front for something. The costs of using a credit card is that there are fees if not paid back on time.

Credit limit: the total amount of money you are allowed to borrow.

At the end of a monthly cycle you are to pay that money back.

If you don't pay it off right away you are going to pay interest.

Helpful Tips!

Tips for Credit card users:
Sign your credit card as soon as you get it. Never share info with everyone.
Use secure browsers. More than the minimum balance. Do not max out.
Only use it for necessities Keep track of what you charge. Always pay on time.

If you pay late you may be charged with fees If you have anual fees. As time goes by they will get intrest on them.

Take control of how you spend and check your credit report once a year!