Credit Newsletter Project

Selena Juarez

Section 1

What is credit?

A agreement in which a borrower receives something of value now and agrees to repay the lender at some later date with an interest (APR).

What are the forms of credit?

The two basic forms of credit are uninsured and secured credit. Secured credit is where you are loaned money against the value of an asset you own and unsecured credit is a riskier proposition for lenders, because they do not have the security of assets that could be taken and sold if you fail on your debts.

What costs are associated with credit?

The primary costs associated with credit cards are the discount fee charged by the credit card processing company. The fee varies with other things on the type of card accepted and the method used to enter the transaction. A credit bureau is a company that collects the credit ratings of individuals and makes them available to credit card companies, financial institutions

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

It's based on whether the person pays bills on time, how much debt he or she has, the length of his or her credit history, how many new accounts the person has, and the diversity of the credit accounts which known as your credit score. Your credit report helps find out of your past borrowing and repaying. It determines your creditworthiness. A lender is the organization or person that leads you money or personal loans.

Section 2

Debit card: A card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase

Credit card: A plastic card issued by a bank, business, etc., for the purchase of goods or services on credit.

Money order: A printed order for payment of a specified sum, issued by a bank or post office

Section 3

What is a credit card?

A plastic card issued by a bank, business, etc., for the purchase of goods or services on credit.

Where can you use credit cards?

You can use a credit card wherever they are accepted. You have a credit limit when used. When you use the credit cards they charge a sum of money every time it is used which is know as interest rate.

What are the benefits and costs of using credit cards?

The benefits of using a credit card is that you might get rewards from the company for using the card and get your credit score up by making payments online. The cost of the credit cards is you needed to pay annual fees. Penalty fees are issued if you violate your agreement. Alone with the over the limit fee.

Section 4

Tips for new credit card users

- Know the different types of credit cards

- Credit card features should influence how you choose to use it

- Expect a credit card statement every month

- Most credit cards come with fees

- The first credit card might be hard to get

- Once you get a credit card sign it right away

- Keep account information to yourself