Credit Newsletter!

high school kids, listen up

What is Credit?

-Credit is a way to buy what you want, when you want.

-You'll have to pay back for what you've bought sooner or later.

- Credit IS NOT FREE money.

What are forms of credit?

- Installment loans

- Student loans

- Personal loans

- Mortgages

- Credit card loans

What costs are associated with credit?

Credit Card Loans

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

The Four C's

1.) Character-are you trustworthy.

2.) Capacity-do you make enough money, capability to pay back loan.

3.) Credit worthiness-what's your credit history.

4.) Collateral-If you can't pay your debt, they'll come and take something you have.

Types of credit cards

What you need to know about Credit

Credit is the amount of debt that you have, and you will establish good credit over time.

With Credit Score is a numeric calculation based on the information found in your credit report. The higher credit score you have, the better. and keep in mind that your credit score stays with you forever! You can see what it is that you're late on and what it is that you haven't payed off yet.

Your Interest (APR) is your yearly cost for the money that you borrow. If you're late on a payment, your APR goes up.

Over the limit fee is a fee that's charged when your balance goes over your credit limit.

A Penalty Fee is a fee that's charged if you violate the terms of your cardholder agreement or other requirements related to your account.

Credit limit is the total amount of money that you're allowed to borrow.

An Annual Fee is a yearly fee charged by credit grantors for the privilege of using a credit card.

Credit Bureau is a company that collects the credit ratings of an individual and makes them available to credit card companies, financial institutions, etc.

Credit Report is a record of an individual or company's past borrowing and repaying, including information about late payments and bankruptcy.

Credit Worthiness is having an acceptable credit rating.

A Personal Loan establishes consumer credit that is granted for personal use, usually unsecured and based on the borrower's integrity and ability to pay.

How to stay safe while using your credit card

Be smart and responsible, make good money decisions all the time. Check credit report at least once a year. There are only three places you can go to get free credit report once a year, equifax, experian, and transunion. is another place as well. Keep your information safe, sign your credit card, don’t share with anyone. always use a secure browser, never share browser with anybody, don’t do online shopping with public browsers. Don’t max out, pay more than minimum balance.

What do I do with my credit card!?

Wait, what's a credit card?

It's a small plastic card issued by a bank, business, etc., following the holder to purchase goods or services on credit.

Where can you use credit cards?

You can technically use credit cards anywhere, but it's best to only use your credit card on big wise expenses, like college, a car, etc.

What are the benefits and costs of using credit cards?

The benefit is that you're not using your own money, but the cost is that you will eventually have to pay for all that you have purchased with your credit card, and when you don't pay for your fee right away, you will have to pay more and the number of what you have to pay will keep on rising till you finally pay it.