Credit Newsletter

Denise Moran

The Basics of Credits

A credit is the ability to borrow money in return for a promise of future payment. There are two types of credits: Credit cards and Loans. Credit isn't a fee, you have to pay interest. To get credit you have to show your creditworthiness; which is your reliability to pay back a loan. Lenders judge this by using the 3 C's; Character, Capacity, and Capital. All this information comes from a credit bureau and a credit score. A credit report is what, when, and who.

Credit Cards: What You Need To Know

A credit card is a card that you're able to use that you have to pay back at the end of the month. You can use a credit card at any store you go to. Credit cards have an annual fee that you need to pay. They also have interest or APR that ranges from 0-29 %. They have credit limits which makes sure you don't over your limit. Over-the-limit is when you go over the money you have on your card. They also have Penalty fees that occur when you have late payments and etc. A benefit for having a credit card is that it allows us to purchase more goods. A cost to having a credit card is that people overuse credit and fall into heavy debt.

Smart Consumers

  • Don't trust everyone
  • Give yourself a limit
  • If you can't pay what you buy within 25 days, don't buy it
  • Ask someone if you don't understand something