As you approach graduation you will be faced with decisions about credit. The decisions you make about credit now can and will affect your financial future for years to come. You may have been warned about the dangers of credit cards and running up debt, but in truth, you need to establish credit at some time if you plan on getting an automobile or home loan. So, how you approach the subject of credit is very important. Credit should be utilized when you can afford to pay it back over a reasonable period of time. Establishing a good credit history, by paying your bills on time, may make the difference in getting a loan with a good interest rate later on.
1. List two advantages and two disadvantages of credit?
2. What are the three basic types of credit?
3. Which is better a debit or credit card?
4. What are the three C's of credit?
5. Use the cost of credit calculator and write below the total cost of a $500 purchase at 21% APR, paying the minimum balance of $15.
6. List a resource a person with credit problems can contact.
7. Why is it important to pay your bills on time?
8. List two ways to establish a good credit history.
9. Do you know someone with a credit problem? What went wrong?
10. List two of the three major credit reporting bureaus .