Credit News Letter

By: Sal Meli

The Basics Credit

● What is credit? Credit is the ability to borrow money in return for a promise of future payment.

● What are the forms of credit? Credit Score between 300 & 850 and the higher the better. Credit Bureau Collects info on consumers’ credit and sells it. Credit Report, What? Credit information and Credit score. Who? Provided by Credit Bureaus and Requested by lenders. When? Apply for credit, Once a year for free; otherwise pay small fee, and Suspect identity theft. Creditworthiness is your reliability to pay back a loan. Credit Cards is common cards: VISA, MasterCard, Discover, AMEX. Incentives: cash back, points, airline miles.

● What costs are associated with credit? Interest which you have to pay. Lender

● What determines if someone gets Credit and how much they get? Personal Loans can effect you from getting a Credit card because it depends on how much you owe.

Credit Cards: What you need to know!

● What is a credit card? Credit Card is the ability to borrow money in return for a promise of future payment.

● Where can you use credit cards? Any where!

● What are the benefits and costs of using credit cards? Annual Fee required annual money amount you must pay ($15 - $100). • Interest (APR) Pay entire balance by due date = no interest (0% to 29%). Credit Limits max amount you can spend using card, Over limit = penalty fee or declined, and Approx $30 for each charge made beyond limit. Penalty Fees additional fee due to late payment, over credit limit, returned payment, etc and could also result in an increase in interest rate. Over-the-limit is going over credit limit.

Staying safe with using credit cards!

•Consider a loan as opposed to using a credit card

 Interest rate may be lower

• Pay credit card balance in full

 Avoid minimum payment trap

• Choose card wisely

 Least expensive; greatest benefits

• Other tips:

 Avoid too many cards, pay cash, don’t miss payments, read what you sign,

avoid identity theft, seek credit counseling if needed, beware of bankruptcy