Outline for Credit- Chapters 6 & 7

Outline for Credit- Chapters 6 & 7 - because 1)....

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Caleb Nyquist Why we use credit cards: easy and convenient use the product while your paying for it emergency situations establish a credit history Cautions with credit cards: credit costs money interest, fees, etc. think we have the money when we actually don’t Types of credit: open ended-unsecured: credit cards, if you buy a TV they wont come and take it away. closed-ended-secured: car, mortgage, etc. This is because they can take it away. Closed-ended-unsecured: Student loans. Bankrate.com- go there to see what a good interest rate is. Affinity cards ( 1% of all you purchase expenses go to MSU for example) isn't a good way to donate
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Unformatted text preview: because 1). you can't deduct this from your taxes, and 2). the bank will take a considerable amount before it goes to MSU. If you pay your card in full each month then you need to worry about annual fees, not interest rates. If you don't always pay in full then interest rates become a big deal. Make sure the interest rate isn't an introductory rate because the rate will jump much higher after 6 six months or a year. Secure card- for those who have bad credit, but want a credit card go for the secured card. You must put down collateral, such as your car, so if you can't pay the amount due then the company can take something from you....
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