What is Credit? Credit is borrowed money that you can use to purchase goods and services when you need them. You and the credit grantor are in agreement.

Slides:



Advertisements
Similar presentations
Credit is the promise to repay borrowed money (principle) with interest over a certain period of time. Credit cards, mortgages, car loans, student loans,
Advertisements

Lesson 9 Fixing Your Credit.
CREDIT Credit Cards Advantages/Disadvantages Bankruptcy.
What you need to Know! What does this mean? What about interest?
Credit Records and Laws
1 CREDIT THE TRUE STORY SMART MONEY. 2 What is Credit? An arrangement to receive cash, goods, or services now, and pay for them in the future. A claim.
 A record of your credit history that includes information about: ◦ Your identity ◦ Your existing credit ◦ Your public record ◦ Inquiries about you.
Basics of Credit. Credit Purchasing today, with the promise to pay later. What does credit offer you? – More time to pay – More money – Instant gratification.
Establishing Credit Presented By:. What is credit? Credit is more than a plastic card you use to buy things --- it is your financial trustworthiness.
Credit.  Credit (from Latin credere translation. "to believe") is the trust which allows one party to provide resources to another party where that second.
Credit Scoring and Scorecard Lending LESE 306 Fall 2008.
Credit Scoring and Scorecard Lending Agribusiness Finance LESE 306 Fall 2008.
Credit Scores and Scorecard Lending AGEC 489/690 Spring 2009 Slide Show #12.
© 2004 ACA International all rights reserved Sponsored by Personal Finance With materials and information provided by: The American Bankers Association,
Credit and Debt: Make it work for you! Insert name, county, and date.
The importance of understanding credit reports The choices you make today directly impact your future. Your credit score can influence how much interest.
Understanding Credit Reports & Credit Scores Presented by Rich Call Consumer Credit Counseling Service.
© Family Economics & Financial Education –Updated April 2009– Credit Unit – Understanding a Credit Card Funded by a grant from Take Charge America, Inc.
Credit.
Staying on Top: Credit Reports and Scores. What’s in Your Credit Report? Personal identification information Name, address, date of birth, SSN, employment.
Credit Scoring Beyond the Numbers MASFAA Conference 2006.
CREDIT Why Worry About Credit? 1.You can easily get credit if you have never borrowed before and have not had any credit problems. Answer: False 2.You.
Going Into Debt Americans and Credit. What is Credit? Credit: is the receiving of funds either directly or indirectly to buy goods and services now with.
Copyright 2007 National Student Loan Program Your (Credit) Life Story.
+ Credit in America Chapter 16 Credit Management Unit 4.
© January 23, 2013 Cities for Financial Empowerment Fund All rights reserved.
Please… Please place your notes from yesterday in the basket Log into Moodle and complete today’s Bell Ringer.
Key Terms Section 10.1 & 10.2  Why should you be careful not to take on more debt than you can easily repay? *Credit *Equity *Creditworthiness *Character.
Rights of Consumers A basic set of protections, agreed upon by society and written into law, apply to purchases of merchandise and services in the United.
CREDIT – Part 2 Business Issues. Credit Cards Paid over a variable amount of time Finance charge (interest) is called annual percentage rate (APR) expressed.
CREDIT BUY NOW…PAY LATER. The use of credit will affect your personal financial wellness for your ENTIRE adult life!
© 2006 Consumer Jungle Credit Scores & Reports. Are you Creditworthy? Have you ever borrowed money? Did you pay it back? Did you pay it back quickly?
YOUR FINANCIAL FUTURE A GUIDE TO MANAGING YOUR FINANCES.
Types of Consumer Borrowing Two basic forms of borrowing: Loans Credit Card accounts Loans can be secured or unsecured.
Jeopardy True/False TermsLaws Q$100 Q$200 Q$300 Q$400 Q$500 Q$100 Q$200 Q$300 Q$400 Q$500 FinalFinal Jeopardy Three Cs Q$100 Q$200 Q$300 Q$400 Q$500 Q$100.
 the ability to borrow money in return for the promise of REPAYMENT  Before using credit you should ask your self:  Is it a want or a need?  Do you.
Credit Reports Take Notes. Cost of CarInterest Rate# of PaymentsMonthly Payment $ 25, %60($438.19) $ 25, %60($460.41) $ 25, %60($483.32)
Personal Finance. The Basics: What is credit, anyway? Establishing credit Credit cards Budgeting Saving Auto loans.
Credit Josh Lienau, Natalie Skelton, Derek Lomibao, Erika Stauss, Cheyanne Decker.
Credit Reports. What is a Credit Report? Credit Report: A record of past borrowing and repayment of debts.
2 What Does it Mean? Determine how much money you can borrow, and how much interest you’ll pay. Each score is specific for each bureau Scores range from…
Personal Finance. The three Cs of Credit 1. Capacity  Do you have a steady job?  What is your salary?  How reliable is your income?  Do you have other.
Going Into Debt Chapter 4. Americans and Credit Chapter 4, Section 1.
CONTEMPORARY ECONOMICS© Thomson South-Western 20.2Using Credit Responsibly  Understand whether to use cash or credit to pay for purchases.  Name the.
CREDIT RATING CREDIT RATING& CREDIT REPORTS. Credit Reports A credit report is a document which includes information on your level of indebtedness and.
Credit is the privilege of using someone else’s money for a period of time and is accepted as a substitute for cash Creditor is any person/ business that.
Using Credit Wisely Types of Credit Credit Card Allows user to charge amounts in different places Given a credit limit, or maximum amount you can.
The Three C’s of Credit Objectives: – Students will be able to describe the “Three C’s of Credit (Capacity, character, and collateral) and factors used.
What’s a Credit Report? From age 18 on, agencies collect data about your spending habits. Monitor your ability to handle risks (i.e. loans I installment.
Copyright ©2004 Pearson Education, Inc. All rights reserved. Chapter 9 Building Good Credit.
Establishing Credit Presented By:. Credit is more than a plastic card you use to buy things --- it is your financial trustworthiness. What is credit?
© South-Western Educational Publishing Chapter 17 Credit Records and Laws Establishing Good Credit Credit Ratings and Legal Protection.
Entrance Ticket What are the two major lines of credit available to you? What options do you have to pay them back?
Lesson 7-2 Getting Started with Credit Learning Objectives: - Compare the sources of credit - List and explain the benefits of credit.
Chapter 7 Buying Decisions. Slide 2 Where Can Consumers Get Credit? Credit is the ability to borrow money and pay it back later. 7-2 Getting Started with.
2 Table of Contents  Personal Identification Information  Trade Lines or Payment Records  Public Record and Collection Items  Inquiries  Consumer.
Credit  When goods, services, and/or money is received in exchange for a promise to pay back a definite sum of money at a futre date.  Lender: the person.
Types of Credit. Loans Borrowing a specific amount for a certain period of time.
Credit The Good, the bad, and the ugly. CREDIT CREDIT CAN MAKE OR BREAK YOUR FUTURE PLEASE PAY ATTENTION TO THIS IMPORTANT LIFE LESSON – IT IS SERIOUSLY.
CREDIT. The Need for Credit  Credit is buying now and paying later  Today 80% of purchases are made with credit  Qualifying for Credit  Income- Money.
Credit Test Review. What card takes money directly from your checking or savings account?  Debit Card.
Key Terms Section 10.1 & 10.2  Why should you be careful not to take on more debt than you can easily repay? *Credit *Equity *Creditworthiness *Character.
Chapter © 2010 South-Western, Cengage Learning Credit in America
FICO Your Credit Score FICO is an acronym for the Fair Isaac Corporation, the creators of the FICO score.
Credit The ability to borrow money with the agreement to pay it back later Usually includes interest Debtor—a person who borrows money.
CREDIT BUREAU A credit bureau is a private company that gathers account information from various creditors and provides that information to consumer reporting.
CREDIT BUREAU A credit bureau is a private company that gathers account information from various creditors and provides that information to consumer reporting.
Build Your CREDIT = Build Your ASSET
Credit Profile Basics Credit Profile Basics Credit Profile.
Presentation transcript:

What is Credit? Credit is borrowed money that you can use to purchase goods and services when you need them. You and the credit grantor are in agreement that you will pay back the amount you spent, plus applicable finance charges, at an agreed- upon time.

Types of Credit Revolving Credit Ex: Visa, MasterCard, Discover, or Store Credit Cards- Macys, Dillards, Express, etc… Charge Cards Ex: American Express

Types of Credit Service Credit Ex: Electricity, Cell Phone, Cable, etc… Not all are reported to Credit Agencies Installment Credit Ex: Car Loans and Mortgages

Credit Report A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness Personal Data, Summary of Credit History, Detailed Account Info, Inquiries, Info on How to Dispute

Credit Bureaus Experian TransUnion Equifax Each bureau assigns your Credit Rating and Score based on your Credit History

Credit Scores A credit score is a number calculated using information from your credit history Lenders use that number to help them decide how likely it is that they will be repaid on time if they give you a loan or a credit card. FICO Score- Fair Isaac Credit Organization

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2024 SlidePlayer.com Inc. All rights reserved.