Credit Newsletter

By: Christina Perez Pd.7/8

Basics Of Credit

● What is credit?

  • A credit is the ability to borrow money in return for a promise of future payment . "Buy now, Pay later" It's like a personal loan that you can put down.

● What are the forms of credit?

  • Two types of credit:
  • ---> Loans- Lender gives money, then you pay back in limited time
  • ---> Credit Cards

● What costs are associated with credit?

  • The costs are associated with credit is Interest (APR).

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

  • To get credit, you must demonstrate your creditworthiness.
  • Credit Bureau collects info on consumers’ credit and sells it.

-----> Determine the credit score

Watch Vocabulary

Credit is the ability to borrow money in return for a promise of future payment. Credit is NOT free, you would have to pay interest. Which is known as APR or annual percent rate. To get credit, you must have creditworthiness. You have to pay back all loans. Lenders judge on the follow three factors..Character, Capacity,and Capital. Credit Bureau collects info on consumers' credit and sells it. They carry records of every adult. They are the ones who assign the credit ratings of your personal score. The Credit score are between 300 to 850. The higher the better.

Questions to Answer

● What is a credit card?

  • Regular charge accounts. Pay balance in full price. Can carry balance from month to month. If not payed on time, you have penalty fees to pay as well. Interest Rate (APR) will also be affecting. This can also happen if you go over the Credit limit.

● Where can you use credit cards?

  • As long as you want, and as long as you pay your Annual Fees

● What are the benefits and costs of using credit cards?

  • You can have over the time fee, meaning you can carry to the next month.

Smart Consumers:

When you get credit card. Make sure to use it at good terms. And not go over the credit limit. That can really effect your credit scores. Which can effect on getting into large investments. Lenders will not be willing to loan money to you because of your bad credit score. You should not spend more than what you make in 2 weeks on your credit card. My personal opinion would be to only use the credit card in an emergency.