Credit Newsletter

Basics of Credits

Questions about credit

What is credit?

Credit i snot free money.

What are the forms of credit?

Form of credit or low limit, student account and secured.

What costs are associated with credit?

What determines if someone gets credit and how much?

4 c's

  • character
  • capacity
  • collateral
  • capital

Vocabulary Watch


  • credit score: follows everywhere you go, how trustworthy you are paying your bill. How much debt you owe if you can get a loan.
  • interest APR: annual percentage rate amount if extra money you have to pay varies
  • credit report: free credit report, check at least once a year
  • lender: person that lends you the money

What you need to know

What is a credit card?

Allows consumers a continuing balance of debt, subject to interest being bought.

Where can you use credit cards?

Just about anywhere. (super market, retail stores, restaurants)

What are the benefits and cost of using credit cards?

You can buy anything you want at the time even if you din have the money. Bad thing is they charge interest and sometimes with that interest it gets to be too much.

Smart consumers: Don't fall into the credit card trap.

Tip for having a credit card

  • when buying something make sure you can pay for it in a reasonable amount of time.
  • make all your payments on time.
  • get a credit card that the interest rate isn't so high