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
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.