Credit Newsletter

credit cards

The Basics of Credit

What is credit?

makes buying big purchases possible but you have to pay it off

  • It's NOT free money
  • you can get one free credit report per year
  • 3 sites where you can get one free credit report: equifax, experian,transunion

What are the forms of credit?

home loans, student loans, credit card loans

  • low limit credit card =limit how much you can own
  • Personal loans are usually unsecured and based on the borrower

What costs are associated with credit?

Credit can help you buy anything you want such as clothing, a new car, furniture etc. faster than you can do saving up money.

  • Remember your credit score is based on your credit report and that stays with you forever
  • Using a credit card can sometimes be a good thing but it can lead to bad decisions

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

the four C’s: character= find out if you’re trustworthy, credit worthiness, collateral and credit history.

  • your interest will tell you how much you can borrow
  • Lending institutions can also get your information through a credit bureau

Vocabulary Watch

  1. Credit Worthiness- A measure of your reliability to repay a loan. You must have the ability and willingness to pay your debts.
  2. Credit- The ability to obtain goods or services before payment, based on the trust that payment will be made in the future.
  3. Lender- A person that lends money to people
-To provide (money) temporarily on condition that the amount borrowed be returned, usually with an interest fee.

Credit Cards: What you need to know

What is a credit card?

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

  • You have credit limits and you never want to exceed that amount.
  • When using a credit card you must make up annual fees, penalty fees, and over-the-limit fees

Where can you use credit cards?

you can use credit cards in a capital, in many stores and anywhere where they accept credit cards.

What are the benefits and costs of using credit cards?

Your interest rate does tell u how much you can borrow so you wont have to worry about spending too much on your credit card.

Smart Consumers: Don’t Fall Into the Credit Card Trap

ways to stay safe while using credit cards:

  • sign your credit card right away
  • don’t share account information
  • always use a secure browser
  • be careful with internet connections
  • pay more than the minimum balance
  • don’t max out on your credit card
  • only use it for necessities
  • ALWAYS pay on time