Chapter 18

                               Jordan May

Credit is lending money that
must be repaid
Finance Charge
• interest or a fee charged for borrowing money
  or buying on credit.
Interest rate
• the percentage of a sum of money charged for
  its use
Credit Card Companies
•   Visa
•   MasterCard
•   Discover
•   American Express
Credit Rate
• Why do I need to know
   – You need to know your credit score so you will know if people deny you a loan
• G...
Credit Benefits
• Use someone else's money
• Easy to use
Credit Problems
• You have to remember to pay the money back
• Easy to lose and have stolen
Interest
• I=PxRxT
Credit Application
• an application for a line of credit
• You fill one out every year
Truth In Lending Law
• protects borrowers and consumers against
  unfair lending practices. It requires lenders to
  hones...
Fair Credit Billing Act
• is a United States federal law enacted as an
  amendment to the Truth in Lending Act. Its
  purp...
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Chapter 18

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Chapter 18

  1. 1. Chapter 18 Jordan May Credit is lending money that must be repaid
  2. 2. Finance Charge • interest or a fee charged for borrowing money or buying on credit.
  3. 3. Interest rate • the percentage of a sum of money charged for its use
  4. 4. Credit Card Companies • Visa • MasterCard • Discover • American Express
  5. 5. Credit Rate • Why do I need to know – You need to know your credit score so you will know if people deny you a loan • Good score – I have had a credit card with a limit above $5,000 – I have not been more than 60 days late on any credit card, medical bill, or loan payment in the last year • Bad score – I have had my own credit card for less than three years or never had one – I have a limited credit history, for example I am a student, or new to the country, or a young person working for a living, or I have been an authorized user on someone else's credit card – I have a valid credit score that can be found at one of the major credit reporting companies. • When do I check – You check whenever you are going to apply for a loan or job
  6. 6. Credit Benefits • Use someone else's money • Easy to use
  7. 7. Credit Problems • You have to remember to pay the money back • Easy to lose and have stolen
  8. 8. Interest • I=PxRxT
  9. 9. Credit Application • an application for a line of credit • You fill one out every year
  10. 10. Truth In Lending Law • protects borrowers and consumers against unfair lending practices. It requires lenders to honestly disclose all loan details, so that borrowers can efficiently compare rates with other lenders.
  11. 11. Fair Credit Billing Act • is a United States federal law enacted as an amendment to the Truth in Lending Act. Its purpose is to protect consumers from unfair billing practices and to provide a mechanism for addressing billing errors in quot;open endquot; credit accounts, such as credit card or charge card account

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