The Basics of Credit
the ability to buy goods or services before payment, based on the trust that payment will be made in the future.
What are forms of credit?
A credit that the bank gives you, but you have to pay them back.
What costs is associated with credit?
The discount fee that is charged by the credit card company.
What determines if someone gets credit and how much they get?
Their credit history, credit score and their salary. Buying something on credit before.
Giving someone money.
Giving someone money for personal reasons
A card that the bank gives you, that you can use pretty much everywhere.
Questions You Might Have:
A credit card is a card that the bank provides you with so that you can use the money on it.
Where can you use credit cards?
You can use credit card pretty much everywhere. For shopping, groceries, services, etc.
What are the benefits and costs for using credit cards?
Benefits: It can be used as an identification card, an you don't have to carry cash with you everywhere you go.
Costs: There is an interest rate (APR) if you don't pay the whole bill at the end of the month, annual bills, penalty fees, over-the-limit fee, and you will also have a credit limit.
Don't Fall Into the Credit Card Trap
-Don't give your account number to anyone.
-When traveling, take only 1 or 2 cards, you don't need 6 cards.
-Use it only when it's necessary.