Everything you MUST know!
● Credit ● Credit Score ● Credit Bureau ● Credit Report ● Creditworthiness ● Interest (APR) ● Lender ● Credit Cards ● Personal Loans
● Credit Score
● Credit Bureau
● Credit Report
● Interest (APR)
● Credit Cards
● Personal Loans
Credit is a way to buy what you want when you want it. Your credit report determines your creditworthiness and how much you get on a credit card. Its not free money and good for big purchases. If for some reason you think its free money and you don't pay your bill, your lender will raise interest rates and you will be paying just about an arm , leg and thigh. Credit also consists of personal loans, student loans, installment loans, car loans etc.
When you can no longer make purchases on your card you have reached your credit limit and you must pay your card off before you get penalty fees, and or over-the-limit fees and the moment you get these fees your credit score starts going down each and every time. There are also annual fees on these cards.
● What are the forms of credit?
installment loans ,student loans,mortgages, credit card, car loans
● What determines if someone gets credit and how much they get?
4 C’s - Character, are you trust worthy
Capacity, capability to pay it back
Creditworthyness , whats your history
Collateral, what you have of value
You must include the following vocabulary words in this section.
● Credit Score
number assigned to you baised on credit report 300-800 higher the better earned over time
stays with you forever determines job and loan
Good- on time payments every time