Melissa Ramirez

Quick facts

What is credit?

  • The ability to borrow money in return for a promise of future payments.

What are the forms of credit?

  • Installment Credit- Credit you use to borrow money and promise to pay back in equal amounts over a specific time period.
  • Revolving Credit- Credit allows you to borrow a pre-establishes amount again and again if your credit score is good.
  • Open Credit- Credit requires that all money borrowed must be payed back in full amounts each month to lender.

What costs are associated with credit?

  • Some costs that are associated with credit is interest rates, late payment fees and over the limit fees. If you pass your limit, they will charge you a fee.

determines if someone gets credit and how much they get?

  • It all determines with the three C's, capacity, character and capital.
  • Capacity- Financial ability to pay back
  • Character- Sense of financial responsibility
  • Capital- Value of what you own

Words related with credit

Credit Bureau- A company that collects the credit ratings of individuals and makes them available to credit card companies.

Credit report- A record of an individuals or company's past borrowing

Creditworthiness- trustworthiness with money as based on a person's credit history

Personal loans- A loan that establishes consumer credit that is granted for personal use

Penalty Fees- Fees charged if you violate the terms of your cardholder agreement


  • Never over spend your credit card money because there are fees
  • Before buying anything make sure how much money you have in credit card
  • When shopping online, make sure its a trusted website
  • Never give anyone your credit card number
  • If lost, report immediately