Spending
Benefits of a debit card
form of pay now convent to pay for everyday purchases no cash needed can not spend more than you have
Explain a mortgage
Mortgage is a loan to finance house, most common= 15 to 30 years, and had fixed interest rates determined by credit score
Rewards rate
What the credit offers to you when you spend money using the card
Two expenses and examples
Fixed: mortgage payment, car insurance, cable bill, etc. Variable: entertainment, dinning out, gasoline, etc.
Benefits if a credit card
helps build credit scores build finical management skills provides emergency protection and makes big purchases more convent
Installment credit
Installment credit: fixed expense, set period of time, set interest rates, EX car and home loans
Intro offer
an incentive offer when you apply
Good credit range
720-850
Credit card tips
know your credit card limit make payment on time pay full balance monthly to avoid interest think before you charge "can I pay this off right away"
Revolving credit
Revolving credit: no stated payoff, limit to credit, minimum monthly payment, interest rates vary, finical charges, EX credit cards
Annual fee
the amount you pay yearly to have the card
Student loans pay for
Educational expenses, tuition, books, materials, and housing
Saving account details
safe place to put money, minimal interest earned, not an account to spend from, and typically no fraud
Values
Needs
Wants
something that is desirable, worth wile, and important
Something necessary or required for life
Something unnecessary but desired
Regular APR
Recommended credit
Annual percentage rate = interest rate fees
what your credit score has to be or above to apply
Why is it important
Shows you can be trusted to pay a loan back, easier to get loans, lower interest rates, employers may check credit score before hiring
Checking account details
Account where money is accessed quickly, connected to a debit card and checkbooks, no interest earned, and watch regularly for fraud
What influences personal financial decisions
A persons values and perceptions of needs wants influence personal finical decisions
Offer evaluation
shows you how much your points or miles are worth
FICO score percentages
35%-Debt repayment history
30%-Debt owned
15%-How long you've been in debt for
10%-New debt
10%-Types of debt
100%-not based on how much money you actually have