the good and the bad

Basic Of Credit Cards

What is credit? Makes buying big purchases possible, but have to pay it off
● What are the forms of credit? Home Loans, car loans, student loans, personal loan, low-limit credit cards, prepaid credit card, student credit card,
What costs are associated with credit?
● What determines if someone gets credit and how much they get? The four C’s
Character - Are you trustworthy
Capacity - Are you able to pay them back
Creditworthiness - What's your history
Collateral - What do you have of value

● Credit
● Credit Score - Is a number based on your credit report
● Credit Report - may get one free credit report every year alerts.equifax,, trans union
● Interest (APR) - yearly cost for the money that you borrow
● Credit Cards- card where you can buy goods
● Personal Loans-loan that you use to buy anything personal stuff

Credit Important Vocab

Prepaid Credit Card

  • card that gives you a safe and easy way to manage spending for yourself or the people you choose.
Student Credit Card

  • build up your credit score so you're prepared for the real world


  • A private, public or institutional entity which makes funds available to others to borrow.

Basic Of Credit Cards section 3

● What is a credit card? a card to buy goods on credit (pay later)
● Where can you use credit cards? anywhere where they accept them
● What are the benefits and costs of using credit cards? you don't have to pay that instant and you can get a good credit score

● Annual Fees- get charged for using the credit card annually
● Credit Limit - the total amount of money you're allowed to borrow
● Interest Rate (APR)-
percentage rate, typically of interest on loans or credit.
● Penalty Fees - late, charge over the limit, annual fee,
● Over-the-limit fee - spend more than your given or agreed to


  • sign your card
  • don't share personal information
  • work on a secure browser
  • pay more than the minimum balance
  • pay on time!