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?
Vocabulary
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
The ability to obtain goods or services before payment, based on the trust that payment.
Credit Card
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 borrow.
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.