Cred|t Cards and CU!

What |s Cred|t?
Cred|t |s your reputat|on as a borrower and how you
hand|e money lt te//s others how /ike/y you ore to
repoy your /oons CredlL ls made up from lnformaLlon
abouL your borrowlng hlsLory MosL of Lhe lnformaLlon
comes from your credlL reporLs
CredlL ls a LCAn CredlL musL be used wlLh cauLlon and
managed carefully!
ADVAN1AGLS CI CkLDI1 CAkD USL!
,a|n D|sadvantage of ,|sus|ng Cred|t Cards
1 DL81! Cn some cred|t cards
w|th what |s known as a
revo|v|ng ||ne of account your
debt |s nompounded and can
rea||y grow aga|nst you!
2 If you can't pay your debts
your cred|t score w||| drop! 1h|s
w||| make |t much harder |n ||fe
to obta|n a car or home |oan or
other cred|t cards
What |s a Cred|t Score?
W A credlL score ls [usL a number
W 1he credlL score Lells lenders how llkely you
are Lo defaulL on a loan
W CredlL scores are deslgned Lo make lL easy
on lenders 1hey need Lo declde wheLher or
noL Lo approve your loan
W lnsLead of manually readlng Lhrough your
credlL reporLs Lhey can [usL look aL a
number your credlL score
|gher score beLLer
credlL!
Lower score you are ln
Lrouble!
CRIT CAR Q\STIONS!
1 ow many cred|t cards can you name?
2 Do Cred|t Cards represent cash or a |oan? Loan!
3 ow many cred|t cards do you th|nk the average
cardho|der has and why?
nlne! Many answers buL some people Lhlnk credlL cards are an easy way Lo
buy whaL Lhey wanL
Why do you th|nk banks want co||ege students to
have the|r cred|t cards?
College sLudenLs many Llmes look for qulck and easy ways Lo make purchases 1hls can
geL Lhem lnLo credlL Lrouble qulckly!!