Section 1:The Basics of Credit
What are the forms of credit? Home loan, Student loan, personal loans. Credit Cards, Low limit Credit Cards, Student credit card.
What costs are associated with credit?Interest.
What determines if someone gets credit and how much they get? Character - Trustworthy. Capacity - capability to pay back the loan. Creditworthiness - do you pay your apartment. Collateral - What do you have of value.
Section 3: Credit Cards: What You Need to Know
A credit lets you borrow a small amount of money from the bank which you will have to pay back in the future most likely with some interest.
Section 4: Smart Consumers: Don’t Fall Into the Credit Card Trap
- Sign your credit card as soon as you get it.
- Always use a secure browser
- pay more then the minimum owed.
- Always pay on the time