Credit

Dulce Nancy Munoz

What is credit

Credit is basically a promise to pay back later in time, with the consequences of later on obtaining a bad credit score in your future. On time payments can lead you to having good credit along with having a low debt and a limited amount of credit cards .Lenders look into your background to decide if you are a dependable person who has responsibility.

Forms of Credit The three C's

Capital:Value of what you owe

Capacity: Financial ability to repay

Character: Sense of financial responsibility


Credit Worthiness: Able to to pay off your personal loans using you value like a home. Have a high income, and a job you are secure in.




What Are The Costs?

Cost are basically based on how much you want to BORROW. Money is not free and eventually you will have to pay for it. Their system is created this in the way of letting one borrow with an intention of gaining some money in return with interest or annual fee, There are limits on how much you can spend and if you pass your limit it may result to be declined or a 30$ fee.


What determines Who Receives Credit?

Depends on your income if you have the ability to pay on time along with your bills. This is known as your credit bureau. This will show if you qualify and if your able to pay off on time. Your credit score will determine how you will pay off or if you're able or not to pay off. Make sure to check once a year just to assure if your identity was not stolen. In case if you suspect of so.


Factors that determine if whether or not you qualify are the following

  • Bankruptcy
  • Missed a rent payment
  • ever been sued



Once your 18

You must understand that only you can determine if you will be able to handle taking out a personal loan or even alone applying for a credit card. It is very important to pay your credit card fees because falling behind on your fees can lead you to having a bad credit that will later on in the future will determine if whether or not you will be able to pay for a car or even buy a house.it is very important to have a good credit score

What Is A Credit Card?

A credit card is a plastic card that allows the credit card holder to pay at any store with the intend to paying back later in time,Interest will apply to you depending on your sales.This is known as annual fees. There is a credit card limit will apply to you in any store that you visit. If you pass your limit the card will be declined.or sometimes it will allow you but there will be a penalty fee in return. An over the limit fee will probably result in 30$ plus what you used.


Being Smart

Avoid many credit cards pay cash, avoid late fees, and and choose wisely the type you choose. Leas expensive is the best.Be safe make sure you read everything that requires a signature.Check annually to avoid identity theft