Credit Newsletter Project

Unit 5: Credit

Section 1 : Basics of credit

1. What is Credit?

  • Credit is an agreement which the receiver borrows something and agrees to pay it back to lender in some date in the future

2. What are the forms of Credit?

  • 1.Credit Card 2.Student Loans 3. Personal Loans 4.Car loans

3. What costs and benefits are associated with credit?

  • Cost
  1. interest
  2. Fees

  • Benefits
  1. Lower interest rate (APR)
  2. Builds good credit report
  3. Creditworthiness (being able to take out loans)
  4. Raises credit score

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

personal income

past record


Section 2 : Credit Cards: What You Need to Know

  • What is a credit card?

A plastic card that is issued by a bank so that you can buy things on credit, it comes with a annual fee that you must pay each year and with interest rates. there's also a credit limit to make sure the buyer doesn't go over board and if you you get an over the limit fee ; if the buyer doesn't pay the credit card bill on time he gets Penalty fees

  • Where can you use credit cards?




  • What are the benefits and costs of using credit cards?


Building Credit

Earn rewards

Universal acceptance

signup bouneses


penalty fee

High interset rate

Credit fraud

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Section 3 : Shopping for Credit

Section 4: Smart Consumers: Don’t Fall Into the Credit Card Trap

  1. THE 0% INTRODUCTORY APR (Most 0% APR offers are for balance transfers only. Any new purchases or cash advances will be subject to a much higher)
  2. Late Fee (Always pay on time ; it will double your APR and charge you late fees)
  3. FIXED RATES Credit Card lender can change the interest rate
  4. No Annual Fee (people jump to conclusion that having ,but the truth is if you don't reach level of spending , issuers now impose an annual fee if you don’t reach a set level of annual spending)