Credit Cards

Jon Rodriguez

Basics of Credit

Credit is the ability to buy things using the banks money, but in time having to pay it back. The bank is the lender, you use their credit card and they give you a certain amount of money on the card to use to pay for things. Usually loans like personal loans put you into debt, and if you are not able to pay back that debt you will have a bad credit score, and in the future when you want a loan to pay for a car or a house, the bank will decide by your creditworthiness if you will be able to get one or not. Most banks have you pay an annual percentage rate on the your credit car, a fee that you pay yearly to keep the card. If you don't know your credit score and would like to know it, you would contact a credit bureau and they would send you a credit report.

Credit Cards

Credit cards are plastic cards that are distributed by banks to people who want to buy things using credit, which puts them in debt with the bank. The benefit is that you can get what you want at the time and pay it back when you have the money but you only have a certain period of time to pay it back or it will add up. You can use credit cards basically anywhere, the best is to use it on big expenses, not small ones on fast food and things like that cause believe it or not that will add up faster than you think and will put you in debt. The other thing about credit cards is that with whatever bank you have, you have to pay annual fees, some banks offer $0 dollar annual fee. You always have to pay an APR for having the credit card, and there is a credit limit, if you go over that limit you have to pay an over the limit fee.

Tips

I think if you want to use credit cards, you should find the best bank that will offer good services for using there cards, and i think you should only us it for certain things. Not just for shopping and fast food, cause that will add up and overwhelm you and put you in debt. That debt will add up and ruin your credit score for future references and you wont be able to get loans from the bank.