What's Credit

Why is it important?

Basics of Credit

Credit is borrowing money for something you need at that moment but in the end you have to pay it back. Credit is something that can make or break you. If you have a bad credit score things will not look good for you and the interest(APR) will be a bigger amount unlike if you have a good credit score things will look a lot better for you and the interest (APR) will be a lower number. There are many ways to begin a credit. You can start with getting a credit card, or student loans. When the bank is determining how much money money they are going to borrow you there are things that come up, such as credit reports and creditworthiness. They will check you credit reports to see a person's financial history to insure your ability to repay borrowed money. While the creditworthiness it just for them to see if you are able to keep a steady job, a steady home, and a steady income. If there any problems the lenders will have to look into a Credit Bureau which collect information on credit rating for the lender to get a better intel on who them might be lending money to.

Credit Cards: What You Need to Know

A credit card allows you to borrow a certain amount of money from your bank to make your purchases based on your credit score. You are giving a credit limit and if you go over that there will be penalty fees, and an over the limit fee. WIthout all of these fees you can buy a burger or a round-trip ticket to France. As long as you pay back the money you borrowed within the time period given ,you don’t have to pay extra. If you don’t pay it back in that time period, you’ll have to pay interest along with the annual fees

Credit Card Shopping

The two card I chose to look into are Discover and Chase

Discover

  • No annual fees

  • Late payment won't raise your APR

  • No overlimit fee

Chase

No annual fee

Late payment $15 if balance is less than $100

No over credit charges

Don’t Fall Into the Credit Card Trap

Credit isn't something that should be played around with

These tips should help you stay away from bad credit

  • Pay your bills on time

  • Monitor your history

  • Reduce the Amount of Debt You Owe

  • Setup Payment Reminders
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