Chapter © 2010 South-Western, Cengage Learning Credit Records and Laws Establishing Good Credit Evaluating Credit and Laws 17

© 2010 South-Western, Cengage Learning SLIDE 2 Chapter 17 Credit History Your credit history is the complete record of your borrowing and repayment performance.

© 2010 South-Western, Cengage Learning SLIDE 3 Chapter 17 Your Credit File Every person who uses credit has a credit history on file at a credit bureau. A credit bureau is a business that gathers, stores, and sells credit information to other businesses.

© 2010 South-Western, Cengage Learning SLIDE 4 Chapter 17 Credit Report A credit report is a written statement of a consumer’s credit history, issued by a credit bureau to businesses.

© 2010 South-Western, Cengage Learning SLIDE 5 Chapter 17 Getting Started with Credit Begin with a savings account. Open a checking account. Open a store credit account. Get a small loan. Apply for a credit card.

© 2010 South-Western, Cengage Learning SLIDE 6 Chapter 17 Credit Rating Your credit rating is a measure of creditworthiness based on an analysis of your credit and financial history. Excellent credit rating Good credit rating Fair credit rating Poor credit rating

© 2010 South-Western, Cengage Learning Credit The use of someone else’s money, borrowed now with the agreement to pay it back later is called.

© 2010 South-Western, Cengage Learning Creditor A person or business that loans money to others

© 2010 South-Western, Cengage Learning Debtor A person who borrows money from others

© 2010 South-Western, Cengage Learning Finance Charge Total interest and fees paid associated with your credit card

© 2010 South-Western, Cengage Learning Pawn Broker Someone who runs a legal business that makes high interest loans based on the value of personal possessions pledged as collateral