Credit News

created by: Celina Quintero

The Basics of credit


Credit is basically a payment received. Sometimes if credit is not an option you can always use Personal loans from the bank, or other financial institutes. They assist you in buying cars boats houses,and other big check items.

Quick Questions

Credit Questions

What is credit?

Credit basically means borrowing money from a person or company and returning it at a later date, usually with accrued interest charged on top of the initial sum borrowed.

What are the forms of credit?

Bank Credit, Commerce, Consumer credit, investment credit, international, Public credit, real estate.

What costs are associated with credit?

Discounted fee charges

What determines if someone gets credit and how much they get?

The determination of how much credit you receive is based on how good your credit score or in other words how well you have paid your bills in the past years. A credit score is determined by how often and for how long the card holder pays his credit card bill on time, which is also known as their Credit Report. How much they can receive is on how well they keep track of it all, and this is their Creditworthiness






Section Two: A little Vocab

Check Register-

A document used to record financial transactions in cash.

Safe Deposit Box-

A well protected metal box, usually in a bank, for storing valuables such as money and jewelry.

Inflation-

A general increase in prices and fall in the purchasing value of money.


Section 3: Credit Cards- What You Need to Know

Quick Questions

What is a credit card?

A card issued by a bank, business, etc.with a little cerial number identifying you. You utilize this for the purchase of goods or services on credit which later may require penalty fees if not paid back.

Where can you use credit cards?

Sales, physical stores, gas stations, online, food markets, restaurants,everything that may accept it.

What are the benefits and costs of using credit cards?

Benefits are that you may pay the bare minimum until you pay it all off monthly but the interest rate is what cost for a credit card.


A Little More Vocab

Annual Fees-

Basically a fee that must be payed yearly charged by credit grantors for the privilege of using a credit card.

Credit Limit- A credit limit is the maximum amount of credit that a financial institution or other lender will extend to a debtor for a particular line of credit

Interest Rate (APR)-

This is the percentage dollar amount that determines the yearly cost of credit.

Penalty Fees-

Fees charged if you violate the terms of your cardholder agreement or other requirements related to your account

Over-the-limit fee-

For each month that their balance exceeds their loan limit, borrowers are charged this type of fee, which typically ranges from $29 to $39.


Section 4: Smart Consumers- Don't Fall Into the Credit Card Trap

Always be responsible on what you spend and only buy what you can handle.

Use the card for emergencies, and little on 'wants'. You should pay back your fees as soon as possible or you will lose credit score and have to pay interest. If the credit card is ever stolen report it as soon as possible to not not get your ID stolen and no one else can charge on it.