Salma-Margaret-Angela

Glossary


 * Credit Limit- limited amount of money
 * Credit Report- a report on your credit
 * Credit Risk -the possibility of loss if a borrower defaults on a loan.
 * Debit Card- takes money directly out of your account
 * Ending Balance - Balance at the end
 * Cash Advance- when they give you a higher credit limit
 * Charge Card- credit card
 * Collateral- something that you give know and will finsh the payment later
 * Contract- says how long you must keep that card
 * Credit Card- charge card
 * Interest Rate- the percentage of a sum of money charged for its use
 * Late Fee- amount you have to pay if your payment is late
 * Margin- an amount allowed or available beyond what is actually necessary
 * Minimum Payment- minnimum amount you have to pay
 * Prime Rate - minimum interest rate charged by a commercial bank on short-term business loans to large, best-rated customers or corporations

The five words that I picked to write a paragraph on are cash advance, charge card, collateral, contract, and finally credit card. A cash advance is when you would choose to perfer a higher credit limit. A charge card which is also known as a credit card can be considered as a debit. Collateral is something you put of in turn of paying your debt, for instance if you give someone your wedding ring as collateral, you will eventually pay the money so you can get your collateral back. A contract is a document that says how long you must or are able to keep that card. And finally a credit card like stated before is a charge card, that can also be considered a debt card. Those are my five terms that i learned. - Margaret The five words that I chose that relate to credit cards are, Credit Limit, Credit Report, Credit Risk, Debit Card and Ending Balance. A Credit Limit is the amount of money you have on your card that you are able to spend. Credit Report is when it gives you a report on your credit history. A Credit Risk is when you borrow money and you are unable to pay it back, meaning if you borrow money for a car and you are not able to pay it off they will take your car away. A debit card is money that is already in your account it is your money and you can spend it however you like. An Ending Balance is basically how much your balance is at the end. Those are the five words I have learned. - Salma The five words that i chose that relate are Interest Rate, Late Fee, Margin, Minimum Payment, and Prime Rate. Interest rate is the percentage of a sum of money charged for its use. A late fee is the amount you have to pay if your payment is late. A margin is an amount allowed or available beyond what is actually necessary. A minimum payment is the minimum amount of money you must pay. The prime rate is the minimum interest rate charged by a commercial bank on short-term business loans to a large, best-rated customers or corporations. - Angela

**Should I pay off my credit card balance each month?** Paying off your credit card balance each month is a proper way of maintaining a credit card. Although, your score will be lowered eventually if you owe a lot. Credit Card Bureaus don’t like to see people with high credit card debts because it scares them that they would need a loan. It is the smart thing to pay your bill every month because then you wont have to worry about your credit score going down it will stay high or go even higher. - SALMA

How to start your credit and keep it up! As soon as you can you should apply for a credit report, it might come out low due to the fact that you have never had a history yet, it will slowly grow. As soon as you start to purchase items make sure that you will be able to pay them off on time, or else your credit score will go down. This is mostly the major part of getting good credit. All you have to do is be able to pay your bills on time, and if you cant try not to purchase it. Building a high credit score is easy, but only if you have a job with enough income to pay for your purchases. - Margaret
 * How can I build my Credit Score, and keep it up?!**

Credit history With out a credit card, going into the real world is going to be a lot harder to buy without credit history. Without credit, you will be paying more in interest. It’s harder to start up a credit card with no credit history. Their basically telling you to get a credit card and make sure you make your payments. If you do not make these payments you will have bad credit history.