Stage One

The Basics of Credit

What is credit?

the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

What are the forms of credit?

See below!

Student Loans - designed to help students pay for university tuition, books, and living expenses. It may differ from other types of loans in that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in school.


Credit Cards - Is a product that you can use in a way of borrowing money. You have a credit limit with this as well.

What costs and benefits are associated with credit?

Credit cards can save a lot of time! Just one swipe and you are all ready to go!

And just as you read above, you're borrowing money! It's just handed to you wherever you are!


Watch out! Relying on your credit card too much results in spending beyond your means!


With spending on a credit card, you need to keep your receipts!

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What determines if someone gets credit and how much do they get.

First of all you need an income. They check for that when applying for a credit card.


Watch out for age limits. You must be 18 years or older to apply.


Don't apply too much for a credit card because that would show them you are just desperate for one.


Once you obtain a credit card, it will be important for you to use it wisely.

Stage 2: Credit Cards: What You Need to Know

What is a credit card?

A credit card is a plastic card given to you by a bank when you apply for one.

-You are able to buy goods and other products on credit.

Where can you use credit cards?

Credit cards can be used at so many places around the nation.


Were talking from basic convenient stores, shopping malls, retail stores to using it for big businesses


Be aware though, all credit cards has its upsides and downsides.


This includes annual fees which is all the money you pay back from which you have used credit on. This also refers back to borrowing money. See below,



Take a closer look at APR.


This is your Annual Percentage Rate.


Pretty much it is the rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction.


Spending too much way over your credit limit will result in penalty fees, which is required of you to pay off if you let this happen. So just don spend like a freak.

Credit Card #1

Section 3: Shopping For Credit




Card #1

Name of Card

Discover it®


Website

CreditCards.com




Annual Fee

(if any)

$0


Annual % Rate (APR)

11.24% - 23.24% Variable*


Grace Period

21 days



Other Fees:

*Late Payment

*Returned Check

*Balance Transfer

*Cash Advance

-



Benefits/Special Features/Rewards/Services

-1% cash back or more on all other credit card purchases, -5% cashback in categories that change each quarter offered to all cardmembers up to the quarterly maximum when you sign up

-Cash back never expires

-Freeze your account in seconds with an on/off switch on either the mobile app or website to prevent new purchases

- $0 Fraud Liability - you're never responsible for unauthorized purchases on your credit card.

-No annual fee


-Paying late won't raise APR

No late fee on your first late payment


-No overlimit fee

-no foreign transaction fee


100% U.S.-based customer service available anytime

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Credit Card #2

See Below!




Card #2



Capital One® Quicksilver® Cash Rewards Credit Card



Capitalone.com



$0



0% intro APR until January 2017; 13.24%-23.24% variable APR after that.




Grace Period: 21 days


Benefits?

-Unlimited rewards

-Fraud coverage

-no foreign transaction fees

-travel upgrades and savings

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Stage 4!: Smart Consumers: Don't Fall Into the Credit Card Trap.

Tips Below!

As easy as having a credit card sounds, It is always suggested that you should use your debt card anyways.


A debt card is a card that holds the money that you own yourself from your income from your job.


Use that more when spending. Look at the credit card as for emergencies only.


Always watch the credit limit. You don't want to spend way more than you can pay back. Remember that you are borrowing money when you use a credit card and you will get a fee by the end of the year to pay off all the transactions you made with your credit card.

Stage 5!