All there is to know about CREDIT

Basics of Credit

Credit can be defined as basically borrowing money and promising to pay later. You can take out a personal loan on a car, house etc or simply get a credit and pay back later. If you take out a personal loan, you'll be borrowing money from a lender such as a bank. Lenders may charge you interest on the loan. It's different than APR% APR stands for annual percentage rate and applies to credit cards, if you're late on a payment you can charged 10-22% every year or you can be charged late fees for your late payments. Anyone can get creidt but you credit score/worhtiness detemines how much you can get. After you pay off you're debt due to loans/credit cards, you'll have established a credit score, it rates you're credit worthiness and let's businesses etc know how responsible you are with payments etc. the higher the score the better off you are. No matter what you're credit score is, the credit bureau will sell your credit report to others, as a means of making money and showing your creditworthiness to lenders, banks, etc


Credit Cards: What You Need to Know

Things To Know about Credit Cards

A credit card is a plastic card; that has a magnetic strip, is issued by a bank or business authorizing the holder to buy goods or services on credit. They can be used practically anywhere. You can be charged an annual fee of no fee at all. You can be charged late fees or penalized for going over the limit or being late on a payment. Even though there's costs involved such as Annual Percentage Rate (APR%) and fees there's also many benefits. Some cards offer rewards such as travel miles and cash back. You can use a credit card in case of emergency's or if you want to make a big purchase, use the card and pay it off in manageable payments


Smart Consumers: Don’t Fall Into the Credit Card Trap

Tips

Research the credit card you're planning on getting before applying for it


Compare different cards

Read the all the terms and conditions

Never make a late payment

Use only in case of emergencies

Make sure you can manage payments into your budget