Credit
Jackie Rico
Basics Of 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!
Victoria Secret Credit Card.
Stores can send you credit cards, saying that you can get % off your puchase
Collateral
You can get your belongings repo'd for not making payments.
Credit Score
Having good credit you can receive loans for what you need
Questions and Tips
Question and Tips on credit and credit cards
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.