Terms
What is credit?
Amount of money borrower receives and agrees to pay back with interest to the lender.
Pros & Cons of credit cards?
Pros: convenicence - easy to buy something right away, Customer protections - unsatisfied with product can make a dispute easily, Rewards
Cons: Risk of over spending - it being convenient may go over limit, Potential debt - getting into fees
How to build up credit as highschooler?
Getting a credit card at 18
What is debit ?
A record of the money taken from your bank account, for example, when you make a payment.
Can Debit Card gain interest?
Debit cards don't charge interest or annual fees.
Best way to pay off credit?
Pay in full to increase credit score, also avoiding interest charges each month.
2 ways Credit history matters
More credit opportunities/options
Easier access to credit
How does a debit card affect your credit score?
It doesn't affect the score.
What is credit history?
A record of a person’s financial transactions
Why should customers avoid doing minimum payments?
Credit card companies make larger amounts of money and the customers pay much more for their purchases.
Name 3 ways credit history is beneficial.
Stong credit means easier to get loans
Credit history decides if landlords want to rent out to you.
Employers may look at credit history information before offering jobs
When using your debit card, what account would you have to check for money?
checking account
what is the highest and lowest credit limit?
300 to 850
What would happen if you could not pay off the credit card debt in time?
You may incur a late payment fee, penalty interest rate and risk damage to your credit score.
2 ways to build strong credit.
Keeping the same credit card for long periods of time
Asking for a credit increase rather than spending the maximum limit allowed
How can debit be dangerous to use?
By using a debit card, it is directly linked into all personal bank accounts and money.
what does delinquency mean for credit?
Someone who falling behind on required monthly payments to credit card companies.
What can the bank company do if someone were to not pay the credit bill back on time, and or over long periods of time?
The company can file a lawsuit and take it to court
What is one of the simplest ways to build credit?
Do not overspend money; spend as little as possible.
When was the first debit card made?
The first debit card was issued in 1966 by Barclays Bank in the United Kingdom.