Dionne Perry - Credit-Lit Credit 101 for Teens

2021 Dionne Perry

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form, or by any means, electronic, mechanical, recorded, photocopied, or otherwise, without the prior permission of the publisher, except by a reviewer who may quote brief passages in a review.

Instill Publications

2480 Briarcliff RD NE Ste 106

Box 109

Atlanta, GA 30329

www.instillpublishing.com

Cover and interior design: Anita Jones anotherjones.com

ISBN 978-1-7359470-0-6 print

ISBN 978-1-7359470-1-3 ebook

Publishers Cataloging-In-Publication Data

(Prepared by The Donohue Group, Inc.)

Names: Perry, Dionne, author.

Title: Credit-lit: credit 101 for teens: you have this credit thing / Dionne Perry.

Other Titles: Credit lit

Description: Atlanta, GA: Instill Publishing, [2021] | Interest age level: Teens to young adults. | Includes bibliographical references and index. | Summary: ... encourages [teens] to make GREAT financial decisions. Credit scores impact every financial decision. Therefore, its important for teens to understand the positive and negative impacts regarding credit scores and the credit process --Provided by publisher.

Identifiers: ISBN 9781735947006 (print) | ISBN 9781735947013 (ebook)

Subjects: LCSH: Credit. | Credit analysis. | Teenagers--Finance, Personal.

Classification: LCC HG3701 .P47 2021 (print) | LCC HG3701 (ebook) | DDC 332.7083--dc23

Printed in the United States of America

This book is dedicated to the SPECIAL young people in my LIFE.

Diquan Perry, Lavelle Perry, Derek Martin, Davante James, Emry-Rae Joseph, Matthew Glasco, Ricardo Simmons, Peyton Young, Samantha Andrews, Savannah Davis, Summer Davis, Gabriel Andrews, Greyson Andrews, Taylor Rose Jordan, Zane Campbell and Zion Campbell.

As YEARS pass by, I hope you know how much you mean to ME.

About the Author & Speaker

Dionne Perry, a board-certified Credit Consultant, delivers the goods on credit, giving young people exactly what they need to make it in this economy.

With a masters degree in Human Resources a bachelors degree in Education, Training, and Development plus experience as a licensed mortgage broker, Perry is uniquely qualified to educate young people and adults on the importance of maintaining a good credit score. Over the past twenty-five years, shes dedicated time and effort to doing exactly that!

Perry writes and speaks on the subject of credit and all its forms. As a Credit-Litologist, she can be heard on podcasts and at virtual and in-person events at schools, libraries, organizations, and businesses.

www.instillpublishing.com

www.Credit-Lit.com

Why this book Why Now!

Credit-Lit, an inspiring and informative book will engage children of all ages and encourage them to make GREAT financial decisions.

I wrote Credit-Lit because I want to impart to young people early, the importance of having and maintaining a good credit score. I want to help young people avoid some pitfalls that many adults fall into by providing this information in an easily digestible format.

Credit scores impact every financial decision. Therefore, its important for children of all ages to understand the positive and negative impacts regarding credit scores.

This books purpose is to inspire teens to make great financial decisions when applying and repaying creditors now and into their adult years.

What Is Credit?

Credit means being able to borrow money to purchase goods & services when you may not have the cash to cover the cost at that moment.

Credit is considered a loan with the understanding that the monetary balance will be paid back in agreement with the loan agreement set up by the lender (i.e., person, bank, or company) you obtain the line of credit from. This is also known as the creditor.

A line of credit is the amount of money a financial institution, like a bank or company, has agreed to lend you.

Whether or not you are granted credit is based upon your past history with borrowing and repaying creditors. Are you trustworthy? If you are issued a line of credit, will you pay the loan back timely?

How Do You Apply for Credit?

To apply for a line of credit you must be at least 18 years old and have enough income received on a regular basis (i.e. monthly) from an employer or your business.

There are different ways you can apply for credit and there are different reasons you need credit. Here is a list of just a few that might be needed as you finish high school.

Auto Loans

Credit Cards

Mortgage Loans

Student Loans

When borrowing money you dont just pay the original loan amount back, you also pay the interest. For example, if you apply for a line of credit to purchase a new laptop, youre responsible to pay the initial purchase price (cost of the laptop) and the interest or rent on the money you borrowed to purchase the laptop.

Credit Guidelines

Different creditors may have different guidelines based on their specific company needs. But one thing all creditors have in common is that they want:

1 . The borrower to pay the agreed upon payments on time.

2 . If the borrower doesnt pay the agreed upon payments on time, the lender will report a late payment on the borrowers credit report.

Credit Score

A credit score is a number that lenders use to help them decide how likely it is that they will be repaid in a timely manner.

Value Your Credit Score!

Your Credit Score Impacts Everything.

Credit Includes Making a Plan

At the time of purchase, you do not have to pay the balance (the whole amount) of whatever goods (i.e. laptop, automobile, home, cell phone) or services you acquire. But you ARE responsible to repay the loan amount over time.

Before you can purchase an item or service through taking out a line of credit, you have to have an agreement that tells you how and when you have to pay back the loan. This is known as a payment plan/agreement. It tells you very specifically how you are to pay and by what date.