Definitions: credit, loan, annual percentage rate (APR), interest, and principal.
Whats apr?
APR is the annual percentage rate
What’re the dangers of paying the minimum amount on your credit card?
More interest and debt.
Whats the difference between 80% and 20% rule?
80% - if you plan on paying your credit card bill in full each month, it’s safe to use 80% of your credit card limit.
20% if you don’t plan on paying your credit card bill in full each month, it’s a good idea to only use 20% of your credit card limit so you don’t go over what you’re able to pay.
How can you build your credit score?
Making payments on time and doing more then the amount you need to
What happens when your late fees accumulate?
Why is the 80% rule important?
Ensures you don’t go over your limit or what you’re able to pay each month.
Whats a loan ?
The transfer of money by one party to another with an agreement to pay it back.
If your credit score stays low, what happens?
Higher interest rates and fewer loan options
Making payments on time helps what?
Your credit score.
How can you get a loan?
Contact your bank or credit union about a loan, and read the fine print!
What is bankruptcy?
Legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts
Should you have more then 1 credit card?
If you are financially able to pay them in full and on time each month.
What are interest rates?
The fee for borrowing money (loan).
How can your credit score be damaged from debt?
It will go significantly down.
If you card gets hacked what should you do?
Contact your bank or credit union to cancel your card so it’s unable to be used.