Credit Newsletter

Jeanette Treto Consumers Ed Period 2

Section One

What is a credit? It's the ability to receive goods and services before the payment is made. Credit cards are usually better to start off with to get credit. Personal Loans are loans that establish a persons credit. Your credit score is based on your credit report which tells you if you pay off credit. The APR is the yearly cost of money you borrow.

What are the forms of credit? Low limit, prepaid, student

What costs are associated with credit? Its associated with the Credit Bureau which collects all the information of your credit ratings.

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

4 C's

Character: They have to get to know you
Capacity: How much you use it
Creditworthiness: How likely you are you give the money back.
collateral: Security for repayment of a loan

Section 2

Important Vocabulary Terms:

Credit- Receiving goods and services before making payment

Credit Card- A card used to make payments for goods and services but you pay the money back after

Credit Score- The calculation based on the information of your credit

Section 3

What is a credit card? Its a card to make pay the goods and services then you pay off the payment is made. You get a credit limit which is the max amount of credit you can receive. An annual fee gives you the opportunity to use a yearly credit card. You get a penalty fee if you don't pay your credit in that given time, after that you get a over-the-limit fee.

Where can you use a credit card? You can use it at any place as long as they accept credit cards.

What are the benefits and costs for using a credit card? The APR can give you money to borrow for a year.

Section Four

Tips:

Never share your passwords on your credit
Don't max out
Only use it for necessities
Always pay on time
Sign your card
Don’t share information
Use a secure browser
Pay more than minimum balance
Keep track on what you charge