1. Credit Day 2

2. Announcement Updates Test coming up! Next Thursday
Also the state test on the 17th
Collect the stock market game packets
All late work due by the end of next week

3. Credit Cards – The Nitty Gritty
APR- Annual Percentage Rate, the annual interest rate
Grace Period- How long you have to pay before interest starts being charged
Late Fees- Yes, like they sound
Finance Charges- Any fee associated with taking out credit
Default Rates- The interest rate you get charged on overdue payments
Closing Costs- Fees paid to finish a transaction

4. Three Cs of Credit Character- Your reliability in paying back credit
Capacity- Your ability to pay (Do you have a job?)
Capital- How much stuff you have, in case you don’t have an income to repay the debt

5. Long Term Debt Calculations
calculator.aspx
Take special note of the amortization schedule.

6. Credit Reports
A summary of your credit that people giving you loans will look into
Legally, you are entitled to one credit report annually
Can have positive and negative information on it
Negative: late fees, missed payments, collection notices, and bounced checks.
Positive: Lots of credit being paid on time, many different accounts

7. Credit Report
What are some examples (not from this specific report) of positive and negative things that are reflected on your credit report?
Why do you think banks view those things as positive or negative?
Ex. Public Records: If you have law suits that you’ve had to pay, or other issues the city has to keep track of, the bank might be nervous that you don’t keep your promises

8. Credit Score Estimation
Impact:
Why is understanding how to have a good credit score important?