The Basics of Credit
Mrs. Leonard Taught me EVERYTHING i know about credit!!:)
Section 1 :)
- makes buying big things easier to buy
- Loans, installement loans, credit cards
- Interest, annual percentage rates, fees
- Character - what kind of person are you? irresponsible or responsible?
- Capacity - are you able to pay back?
- Creditworthiness(are they able to trust you with past history) - whats your credit history?
- Collateral - they can take things away from you
Section 2 :)
Credit Bureau - Credit ratings of individuals, financial institutions
Credit Report - Websites that tell you whats you credit number
Interest APR - Yearly cost of money you have borrowed
Lender - Organizations that lend money for house payments or more
Credit Cards - Plastic card issued by banks to purchase anything you want
Personal Loans - Loans you need for personal reasons only
Section 3 :) Credit Cards
- Cards that helps you buy mostly anything
- Anywhere they accept them, which is everywhere
- Huge advantages for paying things online or when running low on cash, costs are running over you limit and now you have to pay pack.
Section 3 :) Vocab
Credit Limit - Limit how much you can borrow
Interest Rate - How much you being charged to use your credit card
Penalty Fees - How much your charged if you dont make your payments on time
Over-The-Limit Fee - What your being charged when you overpass you limit
Section 4 :) Tips
- Sign your card
- Put "SEE ID" on back of card
- Dont max out
- Keep track of what you charge
- Pay on time