Credit

Sofia Mamalyha

Vocab

● Credit-The ability to obtain goods or services before payment, based on the trust that payment will be made in the future

● Credit Score-
is a numerical expression based on a statistical analysis of a person's credit files, to represent the creditworthiness of that person.

● Credit Bureau-
is a company that collects information from various sources and provides consumer credit information on individual consumers for a variety of uses

● Credit Report-
a record of an individual's or company's past borrowing and repaying

● Creditworthiness-
trustworthiness with money as based on a person's credit history; a general qualification for borrowing.

● Interest (APR)-
money that you borrow

● Lender- is an institution or individual who loans money to a borrower

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

● Personal Loans- a loan that establishes consumer credit that is granted for personal use

● Annual Fees- A yearly fee charged by credit grantors for the privilege of using a credit card.

● Credit Limit- is the maximum amount of credit that a financial institution

● Interest Rate (APR)- When you purchase a vehicle with a loan, this is the percentage dollar amount that determines the yearly cost of credit

● Penalty Fees- Fees charged if you violate the terms of your cardholder agreement or other requirements related to your account

● Over-the-limit fee- For each month that their balance exceeds their loan limit, borrowers are charged this type of fee

Credit Questions

● What is credit?
Credit is not free money. It is the ability 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?
home loans, student loans, car loans.

● What costs are associated with credit?
There are often annual fees, application fees or late fees that apply, the details of which have to be revealed to the applicant. Some have no annual fee credit cards. It is important to always read the terms & conditions and all fine print thoroughly so that you fully understand all costs associated with a particular credit card.

● What determines if someone gets credit and how much they get?
Character
Creditworthiness
Collateral

● What is a credit card?
It is the ability to obtain goods or services before payment, based on the trust that payment will be made in the future

● Where can you use credit cards?
At any place that accepts them which is usually most everywhere.

● What are the benefits and costs of using credit cards?
One of the most obvious strengths of credit cards is their convenience. Having a major Visa, MasterCard, Discover Card or American Express credit card in your wallet means no more running to the bank for cash, counting out change, or hurriedly scribbling in a check book when you need to make a purchase. Credit cards even offer benefits over debit cards, the other piece of plastic many of us carry. While debit cards look like credit cards, they lack some of the benefits of being able to charge.


Credit Tips

sign credit card
don’t share information
secure browser
don’t tell passwords to anyone
pay more than the minimum balance
pay on time
don’t max out
keep track of what you charge