Lesson 10. Credit - 2 | Уроки математики и физики для школьников и родителей

понедельник, 9 июля 2018 г.

Lesson 10. Credit - 2

Credit cards and store cards.

If you do not have enough money to buy an item, you might buy on credit. There are different ways of doing this such as hire purchase, credit cards, store cards, bank overdrafts and personal loans.

Make sure you know the true cost of buying on credit.

This section deals with credit cards and store cards.

Credit cards

– A credit card can be used to buy items now and pay for them at a later date. They can be used to get cast but this can be expensive to do.

– Credit cards are good if the person pays off the bill within a certain number of days. If the bill is not paid off, interest is charged which means the person will owe even more money.

– People usually have to be 18 or over to get a credit card (not everyone is able to get a credit card).

– Each person has a credit limit. It the person tries to spend more than this, the card will not work or the person will get a penalty charge.

Monthly payment

If a person cannot pay off the bill in full, at least £5 or 5% of the total bill (whichever is the greater) has to be paid. The percentage may be different for some credit cards. If the person does not pay this, there will be a penalty charge and the person will owe even more money.

APR (annual percentage rate)

Look at the APR to compare the cost of borrowing for different credit cards. The APR is given as a yearly percentage. If takes into account all the costs involved and the method of repayment.

In general,

the lower the APR the better the deal.

Store cards

Credit cards can be an expensive way to borrow money over a long period of time. A store card often has a higher APR than a standard credit card so is even more expensive. The advantage of a store card is that you can spread out the cost of buying items and many stores give special offers with their cards at times.

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