What credit is
Types of credit
why people use credit
Advantages of credit
Disadvantages of credit
100
What is credit?
It is a agreement between a lender and a borrower that lets the borrower get money, goods, or services now and pay for them later, usually with interest.
100
What is a revolving credit?
It is a flexible type of open-ended loan where you can borrow money up to a preset limit, repay it.
100
What is a emergency?
A sudden, unexpected expense like a medical bill or urgent car repair where immediate cash is unavailable.
100
What is immediate purchasing power?
The ability to walk out of a store with a necessary item today without paying the full cash amount upfront.
100
What is intrest?
The cost of borrowing money, expressed as a percentage rate that adds up if you carry a balance.
200
what is a credit limit?
The maximum amount of money a lender will allow you to borrow or spend on a revolving credit card or a line of credit.
200
What is instalment credit?
A type of loan where you borrow a fixed lump sum of money upfront and repay it through regular, scheduled payments over a set period of time.
200
What is a connivence?
Purchasing items online, booking flights, or reserving hotel rooms safely without carrying physical cash.
200
What is a debit card?
Credit cards offer better protection against zero-liability unauthorized transactions compared to this type of card.
200
What is overspending?
The financial trap of buying things you cannot afford simply because the credit line is available.
300
What is a credit score?
It is a 3-digit number (typically ranging from 300 to 850) that predicts how likely you are to pay back borrowed money on time, as detailed by the Consumer Financial Protection Bureau.
300
What is a mortgage?
A secured credit product most commonly a Secured Credit Card is a type of credit line backed by a refundable cash security deposit that acts as collateral for the lender.
300
What are large/long-term investments?
Buying items of significant value that would take years to save up cash for, such as a home or a college education.
300
What is a lower interest rate?
A high credit score can secure you a lower rate on loans, saving you thousands of dollars over time
300
What is a late fee?
A penalty fee charged to your account if your monthly payment is received past the due date.
400
What is a credit report?
A credit report is a detailed summary of your financial and credit history, compiled by nationwide credit reporting agencies.
400
What is a secured credit?
A secured credit product most commonly a Secured Credit Card is a type of credit line backed by a refundable cash security deposit that acts as collateral for the lender.
400
What is building a credit history?
Responsible use of credit over time to show lenders you are safe to borrow from in the future.
400
What is flexible budgeting/financing?
This feature allows consumers to break down a large, unaffordable payment into predictable monthly chunks.
400
What is a damaged credit score?
The long-term consequence of failing to repay debts on time, which stays on your record for up to 7 years,
500
What are three credit unions?
Equifax
Experian
TransUnion
500
What is a secured credit card?
A secured credit card is a type of credit card that requires an upfront, refundable cash security deposit to open the account. This deposit acts as collateral for the card issuer and typically equals your credit limit.
500
What are rewards and perks?
Financial benefits like cashback, airline miles, or purchase protection offered by card issuers to incentivize spending.
500
What are renting an apartment and getting a job?
Having a well-maintained credit profile makes it significantly easier to pass background checks for these two common life milestones.
500
What is wage garnishment?
The legal process where a court orders an employer to withhold a portion of your wages to pay off unpaid debts