Credit Info
Everything You Need To Know
Section1: The Basics of Credit
● What is credit?A way to buy what you want when you want it. (not free money)● What are the forms of credit?Instalment, Student , Mortgage, Personal, and Car loans● What costs are associated with credit?● What determines if someone gets credit and how much they get?The four C’s ***1.)Character 2.)Capacity-capability to pay it back.3.) Creditworthiness-looking at your credit reports 4.)Collateral-Something valuable you have.You must include the following vocabulary words in this section.● Credit● Credit Score- A number assigned to based on your credit score 300-800 (The higher the better) Stays with you forever, determines if you can get a job. Establish good credit over time.● Credit Bureau● Credit Report● Creditworthiness● Interest (APR)-yearly cost for the money that you borrowed. (If late on payment APR goes up)● Lender● Credit Cards-- Low limit cards- helps you limit your money, Secured or prepaid credit card-Student credit card--lower interest ● Personal Loans
Section 2: Vocabulary Watch
In this section, you should highlight important credit vocabulary terms (at least 3).
Section 3: Credit Cards: What You Need to Know
Questions to answer:
● What is a credit card?
● Where can you use credit cards?
● What are the benefits and costs of using credit cards?
You must use the following vocabulary words in this section:
● Annual Fees-
● Credit Limit- Limit of money you're allowed to borrow
● Interest Rate (APR)-yearly cost for the money that you borrowed. (If late on payment APR goes up)
● Penalty Fees
● Over-the-limit fee
● What is a credit card?
● Where can you use credit cards?
● What are the benefits and costs of using credit cards?
You must use the following vocabulary words in this section:
● Annual Fees-
● Credit Limit- Limit of money you're allowed to borrow
● Interest Rate (APR)-yearly cost for the money that you borrowed. (If late on payment APR goes up)
● Penalty Fees
● Over-the-limit fee
Section 4: Smart Consumers: Don't Fall Into the Credit Trap
Ways to stay safe while using credit cards (i.e.
tips you would give someone when using credit cards).
Don't Max out
tips you would give someone when using credit cards).
- Be Smart and Responsible
- Check credit report at least once a year
- (Equifax.com)(Annual credit report.com)
Don't Max out