Credit Newsletter

By: Jessica Andersen Period 7/8


What is credit?

-Well credit is the ability to borrow money in return for a premise of future repayment.

What are the forms of credit?

- There are many forms of credit like home loans, credit cards (card for purchasing goods and services on credit), student loans, and personal loans (loan that establishes consumer credit for personal use).

What costs are associated with credit?

-Buying a house, buying a car, bills, loans, etc. Every year you have to pay for the money you borrowed, this is called Interest (APR).

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

-Lenders, people who lend money, judge you for creditworthiness, reliability to repay loans. Lenders go to credit bureau, company that collects info about credit history, to get information on your credit reports,credit history, and credit score, credit report number.

Credit Cards

What is a credit card?

- card issued by a bank or business for the purchase of goods or services on credit.

Where can you use credit cards?

-almost anywhere

What are the benefits and costs of using credit cards?

-Benefits: You don't have to carry around cash, faster payment, and you can pay online.

-Costs: You have to pay an annual fee (yearly fee for using a credit card), you have a credit limit (total amount of money you're allowed to borrow), if might have to pay penalty fees (fees charged if you violate terms or other requirements related to your account), and you go over you have to pay a over-the-limit fee (fee your charged when your balance on your card exceeds your credit limit). If you borrow money you have to pay Interest Rate (APR), yearly cost for money you borrow.

Safety Tips for Credit Cards

  • Don’t share account information
  • Never share info.
  • Use secure browsers
  • Pay more than minimum balance
  • Don’t max out
  • Keep track of what you charge
  • Pay on time