Melissa Bramwell P2
The Basics of Credit
The forms of credit are? Low limit, secured, student accounts, and prepaid.
What costs are associated with credit? The three costs that are associated with credit are Interest(APR) rate, annual fees and late fees.
What determines if someone gets credit and how much they get?
Credit Bureau does background checks to make sure that the individual is good to go. A big thing is Capacity. That is if you make enough money to pay off all the money you owe. Character also plays a big role in this. This is when bank teller asks if your responsible/trustworthy to pay off debt. Your credit score must be good. You must be creditworthiness.
collateral: Something pledged as security for repayment of loan.
Lender: Organization, or person who lends money. Borrower must pay back.
Electric Transfer: moving money from one place to another by using the internet.
Debit Card: This is connected to your checking account. You have money saved in the account and it can be taken out right away by you.
Where can you use credit cards? You can use credit cards any where. They should be used for things that are needed or big purchases. You shouldn't buy to many things or you will exceed your credit limit. You also need to make sure that you don't get penalty fees or Over-the-limit fees.
What are the benefits/costs of using a credit card? The benefits of using a credit card is that you will always be able to buy anything at any time. Your credit card will always be there if you need it. The only bad thing is the Interest Rate (APR). If you don't pay it off you have to pay extra money.