Credit
Sarah and Maddie
Advantages
- There is flexibility in spending
- Must be managed wisely
- Carry much less cash
- It establishes good credit when managed well
Disadvantages
- Easy to spend more than you can afford
- If you carry a balance from month to month, you will pay high interest rates on the amount
~You Should Ask Credit Bureau For Copy of your Credit Report~
Know Credit Card Incentives and Costs
Incentives:
- Free gas, airline miles, $ back, donations
- Designed to encourage you to sign up
Costs
- Annual Fees
- Interest (charge on unpaid balances)
- Pay entire bill before the end of the grace period
Avoid Common Credit Mistakes
- Pay bills when due
- Don't ignore bills if short on money---Contact the lender
- Read & understand what you sign
Five C's of Credit
-Character
-Capacity
-Capital
-Collateral
-Credit History