Credit 101

Mauricio Centeno

The basic of credit

Credit is a way to borrow money in order to get the things you want and pay it later. There are different types of credit, such as student loans, credit cards and personal loans. But if you get credit card you could suffer from interest later. Interest is to pay a percentage of the money you borrowed later on top of what you have borrowed. What determines if someone gets credit or not is by their credit score, because the more you pay your bills on time the better. You find out your credit score by running your credit report. The lender wants to know your credit worthiness, otherwise knows as the ability to repay the money borrowed.

Credit cards

A credit card is a card that you get when you borrow money from a bank,they are a good tool because they can help you when you dont have money,you could pay with those>But when you go over the limit fee or over the credit limit you are in huge problems because you have to pay alot of money from interest rate and if you dont pay it on time you get penalty fees and you have to even pay more money.So the Good thing of having a credit card is that you can have money right infront of you when needed,But the bad one is that you have to pay interest and annual fees.
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use of credit cards

THe best way to use safely credit cards is to not have alot and only used the ones you have in case of an emergency .Becuase if you ihave alot you will get alot on fees and if you use tham alot you will get high interest.
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