Be credit smart

Cortez,Miguel

section 1 : The basics of credit

What is credit ? Credit is the ability of borrowing money for personal loans and promising later on payment. although the bank charges you for interest and looks for your credit report. also when credit is available the bank gives you creditworthiness


What are the forms of credit ? There are five types of forms 1.Loans 2.Secured loans 3.Unsecured loans 4. Installment loans 5. Credit cards this forms are provide for people


what cost are associated with credit ? Costs like buying groceries, paying bills online and many other things are associated with credit, building credit is important and later on can turn this into credit report and can be used for personal loans


What determines if someone gets credit and how much they get ? when some one gets credit the bank decides and looks at all your history transaction. it is important to have a credit card, they see if the individual has more accounts, if they pay bills on time and how much debt does he/she has. credit scores may be from 300 to 850.

Section 2 : Vocabulary watch

Vocabulary

Collateral- is a security of payment or a loan which insures money.


Credit history- a record of an individual borrowing and repaying. They charge you fees


Credit limit- in every card there is an specific credit require and it limited.

Section 3 : Credit Cards : What you need to know

What is a credit card ? A credit card is a plastic card issued by a bank for the purchase of goods or services. can be carry easily in your wallet or pursed instead of having cash. also credit cards charges penalty fees or over time fees if you don't pay on time.


Where can you use credit cards ? You can used credit cards in many stores, Mall, Supermarket, stores, etc they can be easily used.


What are the benefits of cost of credit cards ? Having a credit card can benefit you for future purchases and loaning money, the bad thing of it is that you may pay annual feel and more money in credit can lead to a high interest rate for the individual. each card has credit limit.



section 4 : Smart Consumer : Don't fall into the credit card trap

ways to stay safe while using credit cards


1.Never lend your card to any one it is not safe

2.Always check receipts against your monthly statement

3.Carry only the cards you need

4.Never write your account number or pin any where you can think off

5.Save receipts

6.Don't give your account number over the phone unless you initiated the call


If you fallow the safety regulations you and your credit card should be safe :)