Credit And Credit Card Usage
Learning to use credit cards safely and wisely
Basics Of 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
Interest (APR)
Annual Percentage Rate -typically of interest on loans or credit.
Credit Report
A report containing detailed information on a person's credit history, including identifying information, credit accounts and loans, bankruptcies and late payments, and recent inquiries.
Lender
An organization or person that lends money.
Basics of Credit Cards
Credit Cards And Responsibilities
-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
-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
Chase Bank
Provides credit cards, mortgage, commercial banking, auto loans, investing and retirement planning, checking, student loans.
Bank Of America
The nation's leading financial institution and home for all of your personal financial needs.
PNC Bank
The smart choice for checking, online banking and bill pay, loan, savings, credit cards, investments and wealth management.