Leyden Newsletter #70: Credit
Credit: benefits & downsides, what you need to know
The Basics of Credit
Credit: a 3 digit score based off of your financial decisions, a factor that determines what kind of money can be loaned to you, and what your mortgage is.
Kinds of credit: There are many types of credit that apply to your daily life, some examples are, student loans, car loans, mortgage, store credit, bank loans.
Benefits & Downsides: Interests rate are a big factor when it comes credit, an example would be buying a car, having good credit, you could have anything under 18%, and having bad credit would be an interest rate of 25% and above.
- Determining factors for how much credit you can get: plain in simple, having a good credit score.
- The credit bureau is the firm that investigates credit worthiness and assigns a credit rating to individual consumers.
Credit Cards: what you need to know
2.) Section 2
What is a credit card?: A credit card has a credit limit you can use, depending on how good your credit score is. A credit card uses loans from the bank instead of money. A credit card has annual fees, that if you don’t pay, result in bad credit and a penalty fee.
Where can credit cards be used?: Most businesses allow credit cards, and will usually have signs or people telling you if you can use credits cards there or not.
- Benefits/downsides: A credit card is a very dangerous tool if not handled carefully, and in the right hands, could potentially be versatile in making your budget more flexible.
Shopping for Credit
3.) Section 3
Chase Freedom Card: Annual fee $0, APR, free for 15 months than a variable from 14.24% to 23.24%, Balance transfer fee, 5% of amount transferred with a minimum amount of $5
- Discover It Card: No annual fee, APR, 0% entry APR for 12 months than a variable purchase APR of 11.24% to 23.24%, Balance transfer fee, 3% fee for each balance transfer