1. + Credit Cards Independent Living

2. + The granting of credit: The 3 C’s In order to be approved for a credit card the creditor will look at the following things: Capacity: you’re ability to repay what you charge Collateral: if you don’t pay what can they take back (doesn’t apply for credit cards) Character: based on your credit bureau score, past experience with credit cards

3. + Your credit bureau score: What is it? Each person is given a score based on their credit character Can be anywhere from 0-850 How is it calculated? Payment history, amounts owed, length of history, new credit, types of credit

4. + Your credit bureau score: Why is it important? Your score follows you everywhere and affects everything: Ability to get a loan Ability to get a credit card Ability to rent/buy a home Ability to buy a car

5. + Key terms: APR- annual percentage rate, variable/can change (important to know if you don’t pay off your credit cards)

6. + Key terms: Fees: late fee, over limit fee, etc.

7. + Key terms: Interest calculation: based on average daily balance

8. + Key terms Grace Period: the time you get to pay balance in full without interest charges

9. + What things can hurt score the most? Maxed out credit cards Bankruptcy Missing a payment

10. + What should you look for when shopping for a credit card? Low APR Does it offer rewards? Do they change fees?

11. + Additional notes: When to get a credit card? If you’re 18, apply with a co-signer now, start building credit Apply for a store card (Kohl’s, Target, etc.) You can officially get a credit card on your own at age 18, but if you’re under 21 you need to prove income or have a co-signer