Credit Project

By Erika Gonzalez

Basics of Credit

Credit Is the ability of a customer to obtain goods or services before payment. Also known as buy now pay later. There are different kinds of credit. For example one type of credit is a credit card. A credit card is a plastic card that can be used to pay goods or services. Another type of credit is a personal loan. A personal loan is used to finance a car or a renovation on a home. Some cost that are associated with credit is interest. The APR is very important because you want to know how much you are paying every year. How much credit you have is very important. Your credit score can determine things that you can and cannot buy. The company that collects information relating to credit ratings are called the credit bureau. Credit worthiness is very important as well because it is your obligation to get all payments done and paid and on time. Many places you go to have your credit record they can look at to see if you have good or bad credit. A lender is a company that lends money.

Important Vocabulary

  • Credit: Ability of a customer to obtain goods or services before payment.Everywhere you go to make a big purchase they check to see if you have good credit or not
  • Credit Score: Determines the things that you can and cannot buy. Having a good credit the better. Good credit ranges between 300-850
  • Credit Cards: Piece of plastic you can use to buy goods and services. Kind of like money. Now a days credit cards are very popular.

Credit Cards

Credit cards is a piece of plastic that you can use to buy goods and get services. Kind of like money. Now a days you can use a credit card almost anywhere. They have to have a machine in order for you to use it. You can even use it online. The benefits of using a credit card is that you can buy it on the spot and pay it later. However some people get carried away in credit cards. Also there are fees to pay like annual fees. This determines how much you have to pay yearly. Different credit cards have different interest rates. If you don't pay on time you maybe charged with penalty fees. Also if you go over you are going to have to pay a over the limit fee. Some credit cards have different credit limit some may be higher than others. This determines how much you can spend on that one credt card.
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Smart Consumers

It is always very important to try and be a smart consumer. Always do your research before actually going with a certain bank for credit cards. Some rates maybe higher than others. Don't go to crazy with you credit cards. After all you are going to have to pay them off. If you can't afford it might as well not get it. Not being able to pay your credit cards will lead you with bad credit. Once you have bad credit its not easy to try and fix it. The worst your credit is you are not going to be able to by all the things that you want. It could get to a point where you can't buy a car or a house. Be careful when using credit cards