Personal Finance Lesson #12 CREDIT

Credit cards are

A form of credit

Charge interest for the convenience of immediate purchases

Require a minimum payment and interest

Often have an annual fee

A monthly statement from a credit card company shows:

The current payment due

Current payment plus interest on outstanding unpaid balances

Current payment, interest, unpaid balances, and fees

Annual fees

Some types of additional fees for a credit card might be

Late Fees

Over the limit fees

Annual fee (for the privilege of having the card)

Interest fees

Wise advice for credit card use is:

To not use it if you're not going to pay it off in a couple of months

Not use it at all

Use it for emergencies only, then pay off quickly

Use it for every purchase

Your Credit Score is evaluated on what 5 things?

Credit history, credit card use, loan frequency, bill pay, and bank account status

Length of credit history, amount owed: limits, payment history, frequency of new credit, types of credit used

Debt to income ratio, credit use, on time bill pay, student loan status

Home ownership, car ownership, bill payment, debt to income ratio, bank account standing

The 3 main credit bureaus in the US are called

Equifax, Experian, TransUnion,

Equifax, Experience, TransWorld

Equal Score, Experience, TransGlobal

TransUnion, Experience, Equal Lending

You have the right to free credit reports once a year from the major credit reporting agencies

True

False

A Credit Score ranges from 300-850 and might be an indicator of

Loan Eligibility

Credit Standing

Interest Rates

Payment History

You can make amendments to your credit report by

Adding words of explanation

Checking for correct address

Checking for correct bill pay

Contacting each bureau

Credit History is needed for the following:

Buying a home/ Renting an apartment

Financing a loan, including a car loan

Insurance rates

Getting a credit card

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Personal Finance Lesson #12 CREDIT

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