Basics of Credit.
What are the forms of credit?: Loans, Secured loans, unsecured loans, installment loans, and credit cards
What cost are associated with credit?: discount fee charged by the credit card processing company and the up-front cost of purchasing the equipment. The fee varies, among other things, on the type of card accepted and the method used to enter the transaction. Generally, swiping a card that is presented by the customer yields the lowest cost.
What determines if someone gets credit and how much they get?: it's based on whether the person pays bills on time, how much debt he or she has, the length of his or her credit history, how many new accounts the person has, and the diversity of the credit accounts
● Credit Score- number assigned to a person that indicates to lenders their capacity to repay a loan
● Credit Report-a record of an individual's or company's past borrowing and repaying, including information about late payments and bankruptcy.
● Lender-An organization or person that lends money
● Credit Cards-A small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit
Credit Cards: What You Need to Know
Where can you use credit cards?: You can use credit cards almost anywhere. You can use them at any grocery and department store, gas station, Any bank, for any big purchase and even online shopping. but you have to be careful while using your credit cards because if it gets in the hands of the wrong person things can go very badly.
What are the benefits and costs of using credit cards? Credit cards offer enormous advantages over other methods of payment.One of the most obvious strengths of credit cards is their convenience. Having a major visa,master card, 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
Some more vocabulary to help you if you don't understand:
● Annual Fees A yearly fee charged by credit grantors for the privilege of using a credit card
● Credit Limit maximum amount of credit that a financial institution or other lender will extend to a debtor for a particular line of credit (sometimes called a credit line, line of credit, or a trade line)
● Interest Rate (APR)the percentage of a sum of money charged for its use
● 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, which typically ranges from $29 to $39.
- don’t max out
- always use a secure rap
- keep info safe don’t share
- always sign your card
- always use a secure browser
- pay more then you minimum balance
- only use credit for necessities