Credit Cards:
- Credit cards are also a type of sales credit. Similar to installment plans. They are convenient to use when you don’t want to carry much cash. - Types: single, purpose, and bank credit cards. - Advantages: - maintains a healthy economy, our economic system is built on credit and without the means of buying now and paying later, the economy would collapse - example is the stock market. - allows us to meet emergencies - Convenient - easier to order over the phone - permits purchase on sales or when the price is down - able to enjoy an item while paying for it and raise your standard of living - establish a credit rating - Disadvantages: - credit always costs money - creates risk because you are spending your future income - increases the cost of doing business - encourages careless buying - facilitates over-buying which increases sacrifice that must be made eventually - often increases family conflict |
- Places to borrow:
- commercial bank - savings and loan - mutual savings bank - credit unions - Credit previously or not - Credit before: - your credit rating is based upon how promptly you have paid your debts - No credit record: - other factors will be considered: - employment - student or job status - your assets (saving account, car, etc) - Help you get credit the first time: - Have checking and savings account and manage them responsibly. Sometimes, saving can be used as collateral for a loan. - Use the layaway plans at local store. A type of credit where the store keep the item you are purchasing until you have paid for it. - Make a big down payment. Lenders are more willing to let you make installment payments if you pay large amount up front. - Get a cosigner for a loan (parent, relative, or other adult). |
Credit Video:
For more information visit the following: