+ Credit Cards Independent Living. + The granting of credit: The 3 C’s In order to be approved for a credit card the creditor will look at the following.

Slides:

Advertisements

Similar presentations

Introduction to Business & marketing

Advertisements

What you need to Know! What does this mean? What about interest?

Credit Cards. CREDIT DEFINITIONS Credit Trust given to another person for future payment of a loan, credit card balance, etc. Creditor A person or company.

Teacher Instructions 1.Print the lesson, 2.Display slides 2 and 3 with Procedure steps 1 in the lesson. 3.Display slide 4 with Procedure step 2. 4.Display.

Applying for Credit Chapter 26.1.

Unit 4 - Good Debt, Bad Debt: Using Credit Wisely PG 73.

Back to Table of Contents pp Chapter 26 How to Get and Keep Credit.

Credit You're in Charge What is Credit ??? Credit is an arrangement to Receive cash, goods, or services now and pay for them in the future!

By Mr. Butka Belleville High School. Why do you think it matters what sort of credit history/rating a person has? 5 sentence minimum.

CREDIT NOTES Credit is buy now pay later. The opportunity Cost is future income! Credit can be a great tool and can be necessary but can lead to financial.

HOW CREDIT CARDS WORK What you need to know about credit cards- including what credit cards companies can and can’t do, and what information they have.

The 5 C’s of Credit By:Sierrah, Thorn, Madison and Amber.

S ECTION 10.2 H OW TO Q UALIFY FOR C REDIT Goals: Explain how lenders judge your creditworthiness. Describe factors that determine your credit rating.

PART 2: MANAGING YOUR MONEY Chapter 6 Using Credit Cards: The Role of Open Credit.

Name ___________ Date____________ Credit and Debt-Personal Finance pg

Credit Cards An Introduction “Hi! Nice to meet you!”

Credit Wisdom. Managing Money & Credit: A Lifelong Skill.

Smart Spending: Credit and Budgeting Glow Foundation 2010.

Shanna McGinnis. Key Terms aka WHAT YOU NEED TO KNOW! Credit History: The complete record of your borrowing and repayment performance. Credit Bureau:

Credit Cards Independent Living. Why learn about credit/credit cards?!  9 out of 10 American families use credit  Mortgage, Medical, credit cards, etc.

Credit Cards Adult Living. Advantages of using credit It’s convenient. You don’t have to carry large amounts of cash and you don’t have to go through.

Credit Receiving something now and promising payment at a later time. Principle: Actual cost of the good or service. Interest: Amount paid for the use.

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.

 Buying on credit = buy goods and services now and pay for them later (usually with interest)  Having credit depends on the suppliers’ confidence in.

CREDIT: Day 2. Types of Credit Credit Cards Loans.

USING CREDIT. Managing Money & Credit: A Lifelong Skill.

CREDIT – Part 2 Business Issues. Credit Cards Paid over a variable amount of time Finance charge (interest) is called annual percentage rate (APR) expressed.

Advantages of using credit cards Ability to use item while paying for it No need to carry cash Use of card builds credit history Quick source of funds.

Consumer Credit Laws. Fair Credit Reporting ACT o Provides rules for accessing/correcting credit reports o Requires lenders to tell you why you were denied.

CREDIT VOCABULARY.  Credit = a promise to pay in the future for an item you purchase today.  Finance charge = the cost of using credit. This is usually.

Unit 7: Credit- You’re in Charge?

Section 6.2 Notes. Can you afford a loan?  First way to tell  Second way to tell.

Buy Now Pay Later….  How to analyze the advantages & disadvantages of consumer credit  How to distinguish among various types of consumer credit  How.

Credit. What is it? – the ability of a customer to buy goods or services before paying for them, based on an agreement to pay later. Always investigate.

Credit Basics. Some old stats 83% of college students have at least one credit card 45% of college students are in credit card debt –Average debt over.

CREDIT CARDS. Advantage/Disadvantages Your Credit Worthiness The 5 ‘Cs’ Capacity Character Credit History Capital Collateral The 5 ‘Cs’ Capacity Character.

 What are advantages of credit  What are disadvantages of credit.

Chapter 4.  What is Credit? ◦ Principal + Interest  Installment Debt ◦ Equal Payments ◦ Durable Goods ◦ Longer Term = Lower Payment BUT ◦ More Interest.

Going Into Debt Chapter 4. Americans and Credit Chapter 4, Section 1.

HOW TO GET AND KEEP CREDIT. PICKING A CREDIT CARD You will have to fill out an application. It will ask about where you live, where you work, what other.

Credit Cards Rules and Legislation. How does a credit card work?  Purchase Item: Approval: Sign  Merchant sends receipt to bank gets credit for transaction.

Credit, Credit Cards, Scores and Compound Interest Today, you will need: Spirals, writing utensils, brains. Please, and thank you.

CHAPTER 4 Going Into Debt. Debt = Principal + Interest Credit  Receiving money either directly or indirectly to buy goods and services TODAY with the.

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.

Credit Cards. When thinking of getting a Credit Card follow the Three C’s: Character: Will you repay the debt? How you used credit before? Do you pay.

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.

Jeopardy Begins with c Loans Poor credit Consumer Credit consumer Finance Q $100 Q $200 Q $300 Q $400 Q $500 Q $100 Q $200 Q $300 Q $400 Q $500 Final.

10 Points Question- What is the definition of Character?

Banking and Credit.

Back to Table of Contents pp Chapter 26 How to Get and Keep Credit.

Credit – You’re in Charge.  Credit – the ability to borrow money in return for a promise of future payment. ◦ Credit has the opposite trade-off as saving.

Credit: Buy Now, Pay Later Chapter 5. Credit  3 C’s of credit  Character, Capacity, Capital  Credit History-record of your prior credit purchases and.

All About Credit. Using Credit Credit allows people to purchase goods and services that they can use today and pay for those goods and services in the.

Hidden Cost of Credit How creditors win and you lose.

Unit 4 Credit and Debt What is Credit? Someone lends you money 1. The original amount borrowed is called the ___ Principal.

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.

You and Your Credit UNIT VII – Personal Financial Literacy.

Personal Finance Section Credit and Debt. Personal Finance Section Credit gives extra punch to your purchasing power; but reckless handling of credit.

Chapter 17 Credit Records and Laws. Credit Records and Laws Establishing Good Credit Credit Records Creditworthiness Getting Started With Credit Credit.

Credit Test Review. What card takes money directly from your checking or savings account?  Debit Card.

How to Improve Your Credit Score Who Determines your Score? Three Credit Bureaus:

Going Into Debt Chapter 4 - Economics. What is Credit? Receiving Funds to buy goods with the promise to pay funds back Allows middle class to purchase.

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.

MR. Kiser – Financial Literacy  Default – This happens when a borrower fails to pay the debt owed  Credit – Allows you to buy goods or services.

Do Now 12/8/16 1. List the 3 major credit bureaus

Fixed Term Loans Buying a Car.

Standard SSEPF4 – The student will evaluate the costs and benefits of using a credit card. SSEPF4a- List factors that affect credit worthiness.

How to Get and Keep Credit

Presentation transcript:

+ Credit Cards Independent Living

+ 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

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

+ 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

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

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

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

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

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

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

+ 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