Credit And Credit Card Usage

Learning to use credit cards safely and wisely

Basics Of Credit

What is Credit?

-The ability to borrow money in return for promise of future payment.

What are the types of credit?

-Loans let you barrow money that must be paid with interest.

-Installment Loans are made for fixed amount at the time of your application and approval.

-Credit Cards approve repeated transactions up to a maximum credit limit.

What Costs Are Associated With Credit?

-The amount of interest is affected by the principal,

-The amount of interest is affected by the time it takes the borrower to repay the loan.

-The amount of interest is affected by the interest rate charged for the loan.

-Interest rates vary for various types of loans.

What Determines If Someone Gets Credit And How Much They Get?

-Credit Bureau is a company that collects the credit ratings and makes them available to credit card companies.

-Credit Score is a number representing the creditworthiness of a person.


Helpful Vocabulary When Applying For A Credit Card Or Credit

Basics of Credit Cards

Credit Cards And Responsibilities

Whats Is A Credit Card?

-A plastic card issued by a bank, business, for the purchase of goods or services on credit.

Where Can You Use Credit Cards?

-Stores, Restaurants, Gas Stations, Online Shops, Hotels, Airlines, Hospitals.

What Are The Benefits Of Using A Credit Card?

-Easier way to get credit, in comparison to loans.

-Good for emergency purchases.

-Offer bonuses for regular customers.

What Are The Costs Of Using Credit Cards?

-Interest Rate is the amount of money you pay as a price for the money you borrow from the issuer.

- Annual Percentage Rate. ARP is either fixed, or variable.

- Credit Limit is the amount of money you are allowed to borrow.

-Annual fees vary from $19, to $99, to over a thousand dollars a year

-Transaction fees are also very common and they include fees like balance transfer fees.


Staying Safe And Protected With Credit Cards

-Always signing your card as soon as you receive it.

-Never keeping your PIN code with your card.

-If your card is lost or stolen call the company immediately to report it.

-Always check the amount twice when signing, anyone can make a mistake be it intentionally or by accident.

-Protect yourself by taking your name off the credit bureaus' mailing lists