Credit Notes

Credit Uses

          Good Uses:

                    Emergency

                    Investment

                    Insurance on loan

          Bad Uses:

                    Wants rather than needs

                    Fast food and not paying off at end of month

Bad Credit

          3 C’s of Credit

                    Capacity:          Ability to pay off the loan,  Job

                    Character:          Responsibility to pay

                    Collateral:          Assets

Establishing Good Credit

                    Pay on time

                    Never borrow more than you can pay

                    Borrow only what you need

                    Talk with creditors

                    Open cards count against you

                    Don’t up your limit too much

Revolving Credit

Credit that is available up to a limit and automatically renewed as debts are paid off or paid down .  It enables consumers to pay for purchases over a period of time rather than immediately at the cost of a finance charge.

APR: Annual Percentage Rate. 12 percent annual interest would be 1 percent monthly interest

Scams and Schemes