CREDIT NEWSLETTER/ CE
BY JAPRI PERRY
Section 1 THE BASICS OF CREDIT
What is Credit? What Are the forms of Credit?
cred·it
noun
Credit is the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
Forms of Credit
The Common Forms of Credit are
1. Personal Loan
2. Credit Card
3. Mortgages
4. Car Loan
What Costs are associated with Credit?
The primary costs associated with credit cards are the discount fee charged by the credit card processing company and the up-front cost of purchasing the equipment. The fee varies, among other things, on the type of card accepted and the method used to enter the transaction. Generally, swiping a card that is presented by the customer yields the lowest cost. On the other hand, accepting credit cards over the phone yields a higher rate due to the increased possibility of credit card fraud.
What determines if someone qualifies for credit and how much they get?
Make sure you're old enough for a credit card Or have co-signer
Have your own income
Have a positive credit history
Don't have a lot of debt or save up Security deposit
WHAT YOU NEED TO KNOW ABOUT CREDIT CARDS
In this section, I will discuss the basics of Credit Cards and how to be a Smart Consumer(Dont fall for the credit card Trap)
A credit card is plastic card that lets you access the credit limit your credit card issuer gives you. A credit limit is like a loan. However, instead of giving you the full loan in cash, the bank lets you take a much of the credit as you want at a time.
Where can you use credit cards?
Credit Cards Can be used at local stores, online, banks, currency exchanges department stores and gas stations.
what are the benefits and costs of using credit cards?
Advantages Disadvantages
- Purchase protection Deepening your debt
- Instant cash Unexpected fees
- Build positive credit High-cost fees
- Instant cash
- Convenience
SMART CONSUMERS: Don't Fall Into the Credit Trap
- 1.
- Don’t give your account number over the phone unless you’ve initiated the call. If you’ve dialed a wrong number, don’t give it out at all.
- 2.
- Get a card that has added security features, like a photo ID. Your mom will be so proud.
- 3.
- Never write your account number or PIN on the outside of an envelope or postcard. Grandma doesn’t need to know your PIN.
- 4.
- Draw a line through blank spaces on charge slips above the total to prevent any changes. You want to tip well, but not that well.
- 5.
- Don’t sign a blank charge slip unless absolutely necessary, and only if it’s in an actual store. Never sign a slip handed to you by Dave from down the hall.
- 6.
- Save receipts. Pretend they’re old concert tickets.
- 7.
- Always check receipts against your monthly statements. If anything looks fishy, report it within 60 days of the statement’s mailing date. Unless you actually bought fish with your card, in which case, don’t report it.
- 8.
- Make a list of card numbers, expiration dates, and the toll-free numbers of your credit card companies. Keep this record in a safe place, separate from where you keep your cards. Use this information if you ever have to report your cards lost or stolen.
- 9.
- Carry only the cards you need, especially when traveling. To clarify: you may need 1 or 2 cards. You will not need 6.
- 10.
- Never lend your card to anyone, and don’t leave cards or receipts lying around your room, no matter where you live. We know, we know, Omega House is the safest house on campus.
- 1.