Beging Building a Good Credit

Daniela Leon

What you need to know about credit

Credit is money that you borrow based on the trust that payment will be made in the future. If you pay and keep a good credit that will help you in the future to purchase something that cost a lot of money such a house or a car.


Some forms of credit are secure loans, Unsecured,personal loans, Installment, Students loans, mortgages and Credit cards. The interest for loans varies by lender and its tie closely to the consumer's credit score.


The're benefits and costs of having credit; One big benefit is the people can use it to pay a big amount of money if they don't have all the cash at the moment to pay it. It can be very useful to carry all you money everywhere. It can also offer you a lot of sales, convenience of paying and keep better track of spending. On the other hand some of the costs of credit are fiance charges, if costumer is late to pay some item then they can charge extra money, total cost of an item sometime can get higher and sometimes the costumer can be in danger of identity theft.


Another important thing that you need to know before having a credit is not everyone gets credit (but the majority does) and that the amount is different for everyone. There are a lot of factors that determinate if you get a credit or not, and whats your credit limit. Some of the things that lenders look at are: credit score, personal income and if you as costumer have any debts.




Credit Cards

Credit card is a rectangular piece of plastic (a card) that you use to pay without having to use cash and that let you borrow money from the bank as long as you pay back int he next 30 days.


Some of the benefits of having a credit card are: You can make a large purchase now and pay it later in small amounts, is easier than carrying cash and you can built up your credit score which will be useful later on. Some of the costs are: The ease of using credit cards can cause you to overspend, You can easily dig yourself into debt if you're not careful about your spending and had penalty fees and interest rates can make even a small debt seem larger over time.

Don't fall into the credit card traps

If you're going to have a credit card you shouldn't used it for the every days payment or anything small if you have another way to pay because your debt can grow even if you don't notice it. This debt is money that you have to pay and with interest with the risk that the debt increases if you don't pay. Is better to use it in emergencies or big payments.



  • Don't let the debt grow
  • Keep track of your spending
  • Be aware of how much money you can pay (spend) and how are you going to pay it in how many days.
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