Chapter 6 Credit

credit is

• an arrangement to receive cash, goods, or services NOW and pay for them LATER

• number that represents how good you are at paying money back

• plastic payment card connected to a credit bank account

• plastic payment card connected to a debit bank account

credit score is

• plastic payment card connected to a credit bank account

• plastic payment card connected to a debit bank account

• an arrangement to receive cash, goods, or services NOW and pay for them LATER

• number that represents how good you are at paying money back

a credit card is

• number that represents how good you are at paying money back

• an arrangement to receive cash, goods, or services NOW and pay for them LATER

• plastic payment card connected to a credit bank account

• plastic payment card connected to a debit bank account

What is an example of a good that you can pay for using credit?

• furniture

• car

• house

• food

What are things to consider before buying with credit?

• Do I have enough money to pay the down payment?

• Would I rather use my savings?

• Does this purchase fit my budget?

• Did I do my taxes?

What is NOT an advantage of using credit?

• enjoy goods NOW instead of LATER

• potential increase of credit score

• alternative to pay for emergencies

• temptation to overspend

What is a disadvantage of using credit?

• enjoy goods NOW, instead of LATER

• potential increase of credit score

• alternative to pay for emergencies

• decrease future spending money

What would be considered good credit?

• 300

• 400

• 450

• 700

What are ways to improve my credit score?

• pay bills on time

• keep credit cards open

• max out all credit cards I have

• avoid bankrupcy

• apply for every credit card I find

What is open - end credit?

• line of credit that can be used repeatedly

• a loan for a set amount that requires regular payments

• number that represents how good you are at paying money back

• an arrangement to receive cash, goods, or services NOW and pay for them LATER