Credit News

Wensday December 12, 2012

Basic Of Credit

What is a credit you ask? Well a credit is not free money and it makes buying easy but you have to pay that money back

Four good ways to get Credit!

1) Character? are you trustworthy to make your payments

2) Capacity? How much can you have

3) Creditworthiness? What is your history like

4) Collateral? What do you have of value that we can take

1.What are the forms of credit?
Personal loans they loan you money

Credit cards a card which carries money on it

Lender an organization who lends people money

2. What costs are associated with credit?

By having money now you will be able to

Credit Bureau - company that collects information relating to the credit ratings of individuals and makes it available to credit card companies, financial institutions, and they keep watching your payments

Vocabulary that you should know

A credit is the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future

A credit score is a number based on your score the higher the better if it is between 300-800 you have good credit score

A creditworthiness is a trustworthiness with money as based on a person's credit history

Credit Cards

What is a credit card?
A credit card is small plastic card issued by a bank, business, allowing the holder to purchase goods or services on credit and they have a limited amount of money you can use

but you have to pay that money back, there will also be interest rates add on because of the money you borrowed. Violating the contract (cardholder agreement) will result in a penalty fee.

What are the benefits and costs of using credit cards?
The benefits would be you would be able to buy things online, or stores, or gas stations. There would be a credit limit telling you how much you can spend somewhere
Where can you use credit cards?
Stores, Gas stations, Online Stores

Helpful Tips Which Can Save You

1. Sign your credit card as soon as you get it
2. Only use secure browser
3. Don't max out
4. Pay more on the minimum balance
5. Keep track of what you charge
6. Pay on time

7. Never give you information out to anybody