Credit, Learn all about it!
by: Angelica Michalak
The Basics of Credit:
Important Credit Vocabulary Terms:
Creditworthiness- trustworthiness with money as based on a person's credit history; a general qualification for borrowing.
Collateral- Something pledged as security for repayment of a loan
Credit Limit- The maximum amount of credit that a bank or other lender will extend to a customer, or the maximum that a credit card company will allow a cardholder to borrow on a single card
The Basics of Credit Cards:
Tips of How to Control Credit Cards:
You should consider a loan as opposed to using a credit card because the interest rate may be lower. Also, pay the credit card balance in full to avoid minimum payment trap.
It is important to choose the card wisely. The best card is the least expensive with the greatest benefits. Other important tips would be to: avoid too many cards, pay cash, don’t miss payments, read what you sign, avoid identity theft, seek credit counseling if needed, beware of bankruptcy