Chapter

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Credit Recordsand Laws

17.117.1 Establishing Good Credit

17.217.2 Evaluating Credit and Laws

17

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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 ratingGood credit rating Fair credit ratingPoor credit rating

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Credit

The use of someone else’s money, borrowed now with the agreement to pay it back later is called.

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Creditor

A person or business that loans money to others

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Debtor

A person who borrows money from others

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Finance Charge

Total interest and fees paid associated with your credit card

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Pawn Broker

Someone who runs a legal business that makes high interest loans based on the value of personal possessions pledged as collateral