CREDIT By: Shekaib Rashidi. WHAT IS CREDIT?  The ability to obtain goods or services before payment, based on the trust that payment will be made in.

Slides:

Advertisements

Similar presentations

Credit. Lending Institutions Banks Mortgage Companies Finance Companies Credit Unions Insurance Companies Brokerage Companies U. S. Government Check Advance.

Advertisements

Troy Public Library Creating an Account Learning to Budget REVIEW PRESENTED BY GREENPATH.

Personal Finance Credit Review JEOPARDY 100 Definitions Types of Types of Credit 4 C’s of 4 C’s of Credit Your Rights Credit Report Potpourri

Understanding Loans and Borrowing Money. Development of Credit  In the Past  Credit Today.

What is credit?. VOCAB TO KNOW! Credit : trust given to another person for future payment of a loan, credit card balance, etc Creditor : A person or company.

Taking charge of your finances Credit. Taking charge of your finances Today’s goal The 5 C’s of credit. Installment vs. non-installment credit. Advantages.

CREDIT. ADVANTAGES OF CREDIT advantages: o Able to buy needed items now o Don’t have to carry cash o Creates a record of purchases o More convenient than.

Credit. CREDIT DEFINITIONS Credit Trust given to another person for future payment of a loan, credit card balance, etc. Creditor A person or company to.

CALM.  Able to buy needed items now and pay later.  Don’t have to carry cash  Creates a record of purchases  More convenient than writing cheques.

Personal Finance Chapter 16

THE BIG IDEA (MONEY MANAGEMENT)  SS8E5: The student will explain personal money management choices in terms of income, spending, credit, saving, and investing.

Methods of Payments Cash in Letter of Documentary Open Advance Credit Collections Account Most Advantageous to the Exporter Most Advantageous to the Importer.

1 Sources of Capital SECTION 1: Saving SECTION 2: Investing SECTION 3: Stocks, Bonds, and Futures SECTION 4: Borrowing and Credit CHAPTER 9.

Personal Finance Benchmark Demonstrate an understand that personal spending, saving, and credit decisions have significant implications for the.

Sources of Capital CHAPTER 9 SECTION 1: Saving SECTION 2: Investing

Finance Structures and Issues in the UAE Financial structure is a mixture of long–term debt and equity that a company uses to finance its operations, it’s.

+ Guaranteed Investment Certificate GIC A GIC is a savings certificate sold by the banks A GIC guarantees a fixed interest rate (whereas interest rates.

Bank & Insurance Ms. Cichon Rosholt High School. Financial Institutions Commercial Bank: Financial institution that offers a wide variety of banking services.

Learning About Credit Advantages and Disadvantages.

Chapter 3 1) What is the first step in money management? – Organize your financial documents 2) What are two benefits to having your financial documents.

Credit Cards The Essentials to Take Charge of Your Finances In your opinion, do consumers spend more per month on average when they use a credit.

Credit Fundamentals Chapter Using Credit Two parties involved: 1.Debtor – Anyone who buys on credit or receives a loan 2.Creditor – The one who.

FINANCING THE VENTURE. Financing the Venture  Capital is any form of wealth employed to produce more wealth.  Three forms of capital are commonly identified:

Standard SSEPF4 – The student will evaluate the costs and benefits of using a credit card. SSEPF4a- List factors that affect credit worthiness.

INTRODUCTION TO BUSINESS & MARKETING CREDIT. Objectives Compare the types of consumer credit Describe the advantages and disadvantages of using credit.

Buy Now Pay Later….  How to analyze the advantages & disadvantages of consumer credit  How to distinguish among various types of consumer credit  How.

1 Chapter 2 Flow and Sources of Real Estate Funds.

Chapter © 2010 South-Western, Cengage Learning Credit in America Credit: What and Why Types and Sources of Credit 16.

Credit 3 C’s of Credit. Character – Will you repay the Debt?  Have you used credit before?  Do you pay your bills on time?  Do you have a good credit.

© 2010 South-Western, Cengage Learning SLIDE 1 Chapter 16 Do Now10/21 & 10/22 Study Chapters 8, 9, 10, & 20 for Unit 2 Test.

Loans and Interest Rates Agriculture Credit. Suppose we own a farm and are looking for one of these tractors? Cost: $225,

Credit Cards. 88 million American households have credit cards Average credit card debt is $9,600 per household.

Credit Notes Truth in Lending Act – The law which requires a Lender to state total finance charges and annual interest percentage rates. Equal Credit.

College lesson four about credit.

Credit, Credit Cards, Scores and Compound Interest Today, you will need: Spirals, writing utensils, brains. Please, and thank you.

FINANCING METHODS. FINANCE Where To Turn:  Friends  Trade Credit: Repay within days  Loans From Banks  Commercial Paper: Borrow from Bus. 

Chapter 16 What is Credit?. Borrower(Debtor) – Someone who borrows money Creditor – Person or company who loans money or extends credit.

Credit and Credit Cards Good Credit Bad Credit No Credit Good Credit Bad Credit No Credit.

Credit. CREDIT DEFINITIONS Credit Trust given to another person for future payment of a loan, credit card balance, etc. Creditor A person or company to.

MoneyWi$e Webinar: Good Credit What is credit?  Ability to borrow money or obtain goods.  Your promise to pay the original cost later or over time plus.

Obtain Finance. Types Finance Secured Finance – Finance is given in return for security over an asset – The security is a guarantee that lender has first.

Jeopardy Begins with c Loans Poor credit Consumer Credit consumer Finance Q $100 Q $200 Q $300 Q $400 Q $500 Q $100 Q $200 Q $300 Q $400 Q $500 Final.

Your Own Home The benefits and pitfalls of renting versus owning Renting Owning Mortgage 3 C’s Pre – Qualification Shop for a Loan Pre-Approval On-Approval.

SESSION 20: BORROWING Talking Points Borrowing 1. People receive credit when they obtain the use of someone else’s money to purchase goods or services.

Chapter 1 Overview of Real Estate Finance. Chapter 1 Learning Objectives Understand the relationship between finance and real estate Understand the relationship.

Credit. credit is money loaned in exchange for your promise to pay it back later with interest. interest is a amount of money paid to use someone else’s.

Teens lesson seven credit presentation slides 04/09.

Key Terms Financial/Housing Crisis. Debt When you owe more money than you have.

Credit: “confidence in a purchaser's ability and intention to pay, displayed by entrusting the buyer with goods or services without immediate payment.”

© 2010 South-Western, Cengage Learning Chapter © 2010 South-Western, Cengage Learning Credit in America 16.1 Credit: What and Why 16.2Types and Sources.

Chapter © 2010 South-Western, Cengage Learning Credit in America Credit: What and Why Types and Sources of Credit 16.

Credit Chapter 10. Credit The ability to borrow money in return for a promise of future repayments The ability to borrow money in return for a promise.

CREDIT. The Need for Credit  Credit is buying now and paying later  Today 80% of purchases are made with credit  Qualifying for Credit  Income- Money.

Chapter 7 Obtaining the Right Financing for Your Business University of Bahrain College of Business Administration MGT 239: Small Business MGT239 1.

Advanced Level CREDIT BASICS G1 © Take Charge Today – August 2013– Credit Basics – Slide 2 Funded by a grant from Take Charge America, Inc. to.

1.9.3.G1 © Family Economics & Financial Education – Revised April 2005 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America,

Bell Ringer What important financial decisions will you make in the next few years? BRING A CALCULATOR! © Council for Economic Education1.

Consumer Economics Credit Credit Investing Investing.

Consumer Credit.

Personal Finance Review.

What is this thing called CREDIT??

MYPF 16.1 Credit: What and Why 16.2 Types and Sources of Credit

Credit Basics Consumers Math.

MoneyCounts: A Financial Literacy Series

Standard SSEPF4 – The student will evaluate the costs and benefits of using a credit card. SSEPF4a- List factors that affect credit worthiness.

MYPF 16.1 Credit: What and Why 16.2 Types and Sources of Credit

Personal Finance JEOPARDY Credit Review.

Presentation transcript:

CREDIT By: Shekaib Rashidi

WHAT IS CREDIT?  The ability to obtain goods or services before payment, based on the trust that payment will be made in the future.  Commercial credit, investment credit, bank credit, consumer or personal credit, real estate credit, public or government credit, and international credit.

WHO USES CREDIT?  Consumers  Businesses  Government  Credit, in commerce and finance, is a term used to denote transactions involving the transfer of money or other property on promise of repayment, usually at a fixed future date.

ADVANTAGES OF CREDIT  MONEY  Fixed date of return  Valuable in case of emergencies  Reliable

DISADVANTAGES OF CREDIT  Debt  Very high rate of compounding interest

QUESTIONS TO ASK BEFORE USING CREDIT  What is the fixed rate of interest?  What kind of interest is applied?  What are the potential penalties regarding the payment return?