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


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).

  • Be Smart and Responsible
  • Check credit report at least once a year
  • (Equifax.com)(Annual credit report.com)
Keep your information safe
Don't Max out