All You Need To Know About Credit

And it's importance

Credit

When you leave high school the most important thing you'll need to know about is credit. You'll hear about credit all the time like when you're buying a home, a car or something as simple of as bag of chips. So what is credit anyway and why should you care?

Procrastination is like a credit card: it's a lot of fun until you get the bill.

What is Credit?

Credit is the ability of a customer to obtain goods or services before payment based on the trust that it will be payed back. Now before you go using credit because it sounds good maybe you should learn a little more.

Main Types of Credit

The main types of credit are charge accounts, credit cards, installment credit and consumer loans.

Calculate Credit

To calculate simple interest you multiply the principal by the interest rate by the amount of time or I=PxRxT To find installment interest you divide the interest rate by 12. Then you multiply your unpaid balance by the interest rate you divided.

How Do Businesses Grant Credit And It's Importance.