2. Credit and loans

3. What do I need to know? Credit card revolving access to a fixed sum of money …revolving…? you can spend up to your credit line whatever gets paid back monthly is available again …credit line? amount of credit you can use

4. ….it’s gonna cost ya…. interest money you pay to use credit or borrow money APR = annual percentage rate rate at which interest is calculated finance charge interest charged on the amount you owe

5. …..and cost ya….. annual fee once-yearly charge for using a credit card late payment fee (snooze, you lose) – usually about $25 over the limit fee charged if you exceed your credit line

6. …yes, there’s more…. cash advance fee charged for withdrawal of cash  cash advances usually carry high interest rates!! grace period time between when you’re billed and the due date (3-4 weeks)  your interest rate can go up if you’re late or exceed credit line!!

7. ……what about loans? loan borrow a lump sum of money and pay back over time loan note detailed loan agreement between lender & borrower READ the fine print before you sign!!! principal amount borrowed term length of time to repay the loan

8. ….and……. secured loan borrower puts up collateral to guarantee loan …and if you don’t pay it back…say bye, bye!! Unsecured loan No collateral fixed rate interest and monthly payments stay the same for the term of the loan variable or adjustable rate interest rate changes during the loan term

9. …so….is credit a good thing or a bad thing…?? Benefits…. you can get stuff you don’t have the money for!! duh!! good for emergencies – for things you need – if you know you can pay for over time Dangers… you don’t have the money to pay for the stuff you bought! …again…duh!! DEBT!!!