Credit Card Facts by mackenzie

mlsmith21 — 2014-09-08 16:33:33 UTC

What is a credit score?

amlail — 2014-09-08 16:33:39 UTC

A credit score is a number used to summarize

your credit report and credit history.

mlsmith21 — 2014-09-08 16:35:06 UTC

Is paying all but $1 of your bill a good idea?

mlsmith21 — 2014-09-08 16:35:34 UTC

Paying everything on your balance but one dollar is the worst thing you could do. This causes you to lose your grace period. Your card will start gathering interest from that point on causing it reach a high amount.

Why are credit scores important?

amlail — 2014-09-08 16:37:39 UTC

When you go to apply for a loan, mortgage, a job,

or get a new car, lenders, bankers, and employers

look at your credit score to see how reliable and

responsible you are with your money.

amlail — 2014-09-08 16:39:39 UTC

What is considered a "good" credit score?

amlail — 2014-09-08 16:40:02 UTC

Credit scores can range anywhere from 300 to

850, but the higher the number, the better the score.

Most American's credit scores hover around 720-

750, with only 15% being under 600.

How do they determine your credit score?

amlail — 2014-09-08 16:42:10 UTC

There are lots of factors that influence your credit score; when broken down into percentages, this is what it looks like:

35% - Paying your bills on time. This shows that you are reliable and responsible with your money.

30% - How much you owe. It's not good to owe literally nothing, but owing a lot of money shows you don't manage it well.

15% - How long you've had credit. Having a history of paying off the same credit card bill for a long period of time shows consistency.

10% - Having a mix of credit. It shows you're smart with your money when you use it wisely for different things.

10% - Pursuit of new credit. Occasionally picking up a new credit card and building a good history with it is good.

How are peoples habits on paying their bill changing?

mlsmith21 — 2014-09-08 16:42:56 UTC

Five years ago 29% of people payed their bill in full. Today 36% of people actively pay their bill in full. This is causing the credit card companies to lose money because they don't have as many fees for late payments or as much interest being paid on accounts.

How are cc companies making up for the lost money?

mlsmith21 — 2014-09-10 15:01:57 UTC

They are starting to slap new fee's that even apply to card holders that are paying their bill in full on time each month. One bank tried adding a 10$ fee to close an account. Another charged a $5 fee if the customer didn't use their card in 6 months.

College Students' payments

lwilson19 — 2014-09-10 16:04:38 UTC

College Students spend $1,000 more than usual.

-63% of college students haven current balances of $2,000 and more.

- They tend to have $300-400 interest per year which will increase the amount of money owed on the credit card.

Students have optional ways for affordable monthly payments.

Optional payments for College Students

lwilson19 — 2014-09-10 16:35:51 UTC

-USAA does not have annual fees. Their interest rates are as low as 11%. According to the video, this is a great percentage rate for a charge on interest.

-Life-Line also provides the option of small payments. It is possible for students to make payments as low as $12 per month. It is affordable and beneficial because a majority of students are not able to pay $200 dollars each month.

-American Express is also beneficial for college students because they will not let you carry a balance. This is great because you won't have to worry about a high interest in fees.

REMEMBER TO

lwilson19 — 2014-09-10 16:44:12 UTC

-PAY OFF YOUR MONTHLY PAYMENTS IN FULL TO PREVENT ANY INCREASED INTEREST RATES.

mlsmith21 — 2014-09-12 15:50:26 UTC

mlsmith21 — 2014-09-12 15:50:33 UTC

mlsmith21 — 2014-09-12 15:57:20 UTC