Jackie Rico

Basics Of Credit

What is Credit?

Credit is the ability to borrow money and insure to pay it back, also is can make big ourchases possible, but it is also a privilege.

What are the forms of credit?

Home, Car, Student loans. Credit Cards, Prepaid credit cards, Student Credit cards, Low Limit CREDIT CARDS

What costs are associated with credit?

Debt, fine print.

What determines if someone gets credit and how much they can get?

Your APR, it shows the yearly cost of money that you have borrowed.

The 4 C's

Character- are you trustworthy? Can they lend you money

Capacity- Can you pay back the loan? Can the Credit Bureau give you a loan?

Creditworthiness- what is your credit history? Payments. Do you have good credit? You can get a credit report to check your credit score.

Collateral- What do you have of value if you can not pay? REPO!

Questions and Tips

Question and Tips on credit and credit cards

What is a credit card?

Card used to pay for items without using money. But you must stay within limit so you don't go into debt. There can also be a penalty fee when you spend more or late fees.

Where Can you use a Credit Card?

Any store, online, gas stations

What are the benefits and costs of using credit cards?

Not having to use money, but you have to pay the "money" you spent eventually.

  • When you make a purchase with your credit card make sure they see you ID
  • Don't ever share your information, to prevent identity stealing
  • Secure your browser when shopping online
  • Be careful on wifi
  • pay more than the minimum balance to be safe
  • never use your card unless you need something.