Types of Credit
Credit cards, personal credit
What is Revolving Credit
A numerical measure of a loan applicant’s creditworthiness
What is a Credit Score?
What to do if you lose a credit card.
Call creditor immediately & shut off card.
The ability of a customer to obtain goods or services before payment, based on trust that payment will be made in the future.
Allows you to access a line of credit offered by the bank that issued the card.
What is a Credit Card
Auto loans, student loans, mortgages
What is Installment Credit
Main factor that determines your Credit Score
This lets you avoid interest on purchases or balance transfers during a promotional period.
0% APR Promotion/ Introductory Period
An at-a-glance reference for fees, interest rates and other key points that must be shown to card applicants, by law.
Schumer Box
Reward you for loyalty by giving you discounts or other benefits for shopping at the store that provided the card.
Utility bills, charge cards
What is Open Credit
Name 2 things that hurt a credit score.
Late payments
Not paying in full
Bankruptcies
Foreclosures
Collections
This feature makes payments for you so you don't have to worry about missing one.
What is Auto Pay?
Yearly payment necessary to hold a credit card in your name.
What is an Annual Fee?
Give you money back. You can usually get that money as a check or a deposit into a bank account, or you can use it to reduce your balance
This type of credit is best for cash back and rewards points
What is Revolving Credit
Credit Score Scale
300-850
Allotted spending amount set by a creditor.
What is a Credit Limit?
Three reasons to use credit
Pay as you use things
Build credit score
Cash back/rewards
Flexibility with spending
Earn rewards at a fixed rate (1-2%)
What are Fixed rate Credit Cards
This type of credit has fixed payments & payment term
What is Installment Credit
Why is it important to have a good Credit Score?
Allows you to borrow money at lower cost;
Allows you to take out larger loans, which ultimately means nicer houses, cars etc.
Explain how to avoid paying interest with credit cards.
Pay in full, on time.
Earn points & cash back on flights
Best for people who travel very often (usually work)
What are Cash Back Credit Cards
Different types of expenses earn different rates