Raquel Estrada pd.7/8
Section 1: The Basics of Credit
What is credit? With credit you are able to borrow money and in the future pay it back. You must have a good credit score to borrow money.
What are the forms of credit? Some form of credit are Credit Cards and Personal Loans.
What costs are associated with credit? Credit is not fee and you have to pay interest APR.
What determines if someone gets credit and how much they get? To get credit, you must demonstrate your creditworthiness. The lender has to see if you have are qualified and see your credit score . The Credit Bureau can send the lender with a Credit Report of anybody adult.
Section 2: Vocabulary Watch
Credit cards are sometimes a key factor why people have bad credit score. some common credit cards are VISA, MasterCard, Discover, AMEX. credit cards can also carry the balance from one month to the other.
CREDITWORTHINESS- depends on the capital. This shows the value of what you own. It can range from savings, investments, and property you own. Capacity is the the ability of paying your loans. Character is the sense of financial responsibility. (Having a steady job)
Section 3: Credit Cards: What You Need to Know
The common ones can are VISA, MasterCard, Discover, AMEX.
Where can you use credit cards? You could use them mostly everywhere. (store, anywhere you could buy things)
What are the benefits and costs of using credit cards?
There is a annual fee of 15-100 dollars. If you pay by the date you won:t have to pay Interest (APR). There is a credit limit, there is a max amount that you could not over pend. If you do you will get a over the limit fee. Also you could get an additional Penalty Fees because of due to late payment, over credit limit, returned payment.