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
- 1.Credit Card 2.Student Loans 3. Personal Loans 4.Car loans
3. What costs and benefits are associated with credit?
- Cost
- interest
- Fees
- Benefits
- Lower interest rate (APR)
- Builds good credit report
- Creditworthiness (being able to take out loans)
- Raises credit score
4.What determines if someone gets credit and how much they get?
personal income
past record
Career
Section 2 : Credit Cards: What You Need to Know
What is a credit card?
Where can you use credit cards?
Stores
restaurants
What are the benefits and costs of using credit cards?
Benefits
Building CreditEarn rewards
Universal acceptance
signup bouneses
Cost
penalty fee
High interset rate
Credit fraud
Section 3 : Shopping for Credit
chase sapphire preferred
Annual Fee:$0 first year ,then $95 each year
APR:16.24%-23.24% ranges
Late Fee:Up to $15 if the balance is $100; up to $27 if is $100 to
incentives:%20 off travel redemption
Advantage: No annual fee first year,good for travel
Disadvantage: Annual fee is more expansive after one year
Blue Cash Preferred Card from American Express
Annual Fee:$75
APR:13.4%-23.24% ranges
Late Fee:Up to $37
incentives:%6 on the first $6,000
3% on eligible purchases of gasoline at gas stationsAdvantage: Good reward system
Disadvantage: Late fees
Section 4: Smart Consumers: Don’t Fall Into the Credit Card Trap
- 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)
- Late Fee (Always pay on time ; it will double your APR and charge you late fees)
- FIXED RATES Credit Card lender can change the interest rate
- 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)