+ credit cards independent living. + the granting of credit: the 3 c’s in order to be approved...
DESCRIPTION
+ 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 creditTRANSCRIPT
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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
chargeCollateral: 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 0-850
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 cardsBankruptcyMissing a payment
+What should you look for when shopping for a credit card?Low APRDoes 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 creditApply 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