The Basics of Credit
What are the forms of credit? : Loans and credit cards
What costs are associated with credit?: you get interest for every loan, credit score goes down if you dont pay on time
What determines if someone gets credit and how much they get?:
The credit Bureau determines if your credit worthiness is good enough for the bank to lend you money
Interest (APR): it is a fee paid by money withdrawn
Credit Bureau- record taken of your credit that can tell if your credit is good and you are being responsible with your payments
Credit Cards: What You Need to Know
What is a credit card?
another form of currency that can be used to charge you directly from your bank account
Where can you use credit cards?
anywhere where you can pay for a good or a service
What are the benefits and costs of using credit cards?
credit allows people to use more credit but people also may fall into big debts
Smart Consumers: Don’t Fall Into the Credit Card Trap
make sure you dont use many credit cards and always pay your card balance in full.