Managing Your Credit

1) Which of the following questions should you ask before making a purchase on credit?
Do I have the money to make payments?
2) Which of the following offer credit cards?
All of the above
3)If you find you must make a larger purchase using a credit card, what is the "rule of thumb" for paying off the debt?
Take out a line of credit to pay the deb.
4)To what percentage of your take-home income should your debt payments be limited?
10% to 20%.
5)Which types of credit are referred to as "revolving credit"
Lines of credit.
6)How can you protect yourself from credit card fraud?
Keep track of cards by making a list of important information about the cards.
7) What is APR?
Annual Percentage Rate.
8)It is a good idea to pay off your credit cards each month in full.
False.

Writing:

Why is it important to have good credit in the world today? What will it help you to do? How will you plan to obtain credit and maintain a good credit history?

Good credit is necessary in today's world for several reasons. If you have a very low credit score, you cannot get a credit card and if you plan on making a large purchase such as an automobile or house, you will incur extremely high rates.Your credit score is basically a history payment you have made on your credit cards, loans and even your utility bills. If you pay any of your bills late, this will be reflected in your credit report and lower your credit score.

One way is Pay your bills on time. Good financial management starts with punctuality. By keeping in mind when your payable becomes due, you would be able to formulate a good budget plan to meet them without compromising the funds being reserved for your other needs.

Vocabulary:
Make the payments on your loan if unforeseen circumstances prevent you from making the payments.

The policeman was directing the traffic.

In order to make a good credit history you must pay all payments.

A bad credit tenant loan is usually unsecured.

You need to prove your Creditworthiness to have a good credit history.