M.O.R.E Money Mondays: Gimme Some Credit

Finance Fitness Finesse

In this episode of More Money Mondays, JaeVic guides us into the world of credit, exploring its history, the role of credit cards in our economy, and practical advice on choosing the right card. JaeVic covers the confusing but essential topics like credit scores, utilization ratios, and the difference between APR and APY. Listeners will learn about the importance of paying off balances in full, avoiding the minimum payment trap, and options like secured and student credit cards for building credit. JaeVic also addresses the consequences of not managing credit wisely while emphasizing that with the right approach, credit can be a powerful financial tool.

Resources

• You’re Such a Loaner

• • Listen on Apple Podcasts
  • Listen on Spotify
• Surviving Debt: National Consumer Law Center
• Credit Card: What It Is, How It Works, and How to Get One: Investopedia
• How To Use A Credit Card: Best Practices Explained: Forbes
• Starter Credit Cards: CreditKarma

Social Media:

• • Connect with JaeVic!
  • F^3 Website & Episode List: https://financefitnessfinesse.podbean.com/
• Insta/Facebook: @financefitnessfinesse

Audio:

• Money Roll by Mr Smith; (Free Music Archive); license type (CC BY)
• Fashion House - Short Version by Scott Holmes Music; (Free Music Archive); license type (CC BY-NC)
• Hip Hop Funk Loop by JsoundLAB; (Free Music Archive); license type (CC BY-NC)

Terms

• Credit Score: A numerical expression based on an analysis of your credit files, representing your creditworthiness.

• Credit Report: A detailed report of your credit history prepared by a credit bureau.

• APR (Annual Percentage Rate): The annual rate charged for borrowing or earned through an investment, expressed as a percentage.
• Credit Limit: The maximum amount of credit that a financial institution extends to a client.

• Credit Utilization Ratio: The ratio of your credit card balances to credit limits, expressed as a percentage.

• Hard Inquiry: A credit report check that occurs when a financial institution checks your credit for a lending decision.

• Soft Inquiry: A credit report check that does not affect your credit score, often done by you or a potential employer.

• Secured Credit Card: A type of credit card that is backed by a cash deposit from the cardholder.

• Unsecured Credit Card: A credit card that doesn’t require a security deposit and is based on the cardholder’s creditworthiness.

• Credit History: A record of a borrower’s responsible repayment of debts.

• Debt-to-Income Ratio (DTI): A measure of your monthly debt payments compared to your monthly gross income.
• Grace Period: The time during which you can pay your credit card bill without paying interest.