The Basic Of Credit

What You Need To Know About Credit

Important to Know

  • What is credit?

    • The ability to obtain goods or services before payment, based on the trust that payment.

  • What are the forms of credit?

    • Hire purchase,

    Credit sale agreements, Moneylending.
  • What costs are associated with credit?

    • are the discount fee charged by the credit card processing company

  • What determines if someone gets credit and how much they get?

If you've ever applied for a credit card a loan to buy a house or car or a line of credit to make some other large purchase then you've probably had your credit report reviewed by the lender.

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  • Credit-

    • The ability to obtain goods or services before payment, based on the trust that payment

  • Credit Score-

    • a numerical summary of the information contained in your credit report.

  • Credit Bureau-

    • A company that collects the credit ratings of individuals and makes them available to credit card companies.

  • Credit Report-

    • A report containing detailed information on a person's credit history.

  • Creditworthiness-

    • trustworthiness with money as based on a person's credit history.

  • Interest (APR)-

    • The annual rate that is charged for borrowing expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan.

  • Lender-

    • An organization or person that lends money.

  • Credit Cards-

    • A plastic card issued by a bank business.

  • Personal Loans- a loan that establishes consumer credit that is granted for personal use usually unsecured and based on the borrowe.

Some of Important Words

Credit Cards Information

The history

  • What is a credit card? A plastic card issued by a bank business.

  • Where can you use credit cards? Anywhere and banks.

  • What are the benefits and costs of using credit cards?

    • Although the danger of overspending with a credit card and running up major interest charges exists, those cardholders who use their credit card wisely can experience major benefits.

Tips on Credit

  • Annual Fees- The fees you have to pay each year.

  • Credit Limit- How much are you spending it on and keeping track.

  • Penalty Fees- When the goverment comes saying you need to pay your bills.

  • Over-the-limit fee- The limit of how much money you owe them big time and need to pay.