Credit Newsletter

By: Kevin Kirkwood

Section 1

What is credit?

Credit is the ability to borrow money, in return, promising that you will pay for it later. Credit is not a fee, but you must pay interest or APR.


What are the forms of credit?

Character, Capacity, Capital


What costs are associated with credit?

Personal Loans are associated with credit.


What determines if someone gets credit and how much they get?

To get credit, you must demonstrate your creditworthiness, which is your reliability to pay back a loan..

Section 2

Bounced - When a check will not clear with the bank.

Bankruptcy - When you have none, or negative money in your account.

Debt - When you owe someone or a company money.

Section 3

What is a credit card?

A credit card will use other people's money when you make a purchase, but you have to pay them back to balance out your credit.


Where can you use credit cards?

Anywhere you feel safe using it to buy something.


What are the benefits and costs of using credit cards?

You can earn extra money (interest rate) by maintaining good credit and paying your annual fees, and not exceeding your credit limit. A penalty fee (over-the-limit fee) can occur when you go over your credit limit.

Section 4

In this section, you should discuss ways to stay safe while using credit cards (i.e.

tips you would give someone when using credit cards).


Use your credit card only in a safe, trusted place/business. Many people could try to steal your credit information and screw you over with the payments. Always maintain a positive credit. You will not have to pay the over-the-limit fees, and you can earn interest by keeping a good credit. Have a strong creditworthiness. You can obtain this by always paying your debts on time, and in the full amount. Then the credit bureau will trust you with borrowing money.