Section 1

Credit and types of Credit

Credit is the ability to obtain goods or services before payment. There are a lot of forms of credit but a few of them are,Secured: With this kind of credit, the creditor guarantees that it will be paid back by putting a lien on an asset you own,Installment: With installment credit, you borrow a certain amount of money for a set period of time and you repay the money by making a series of fixed or installment payments. Some cost's to credit are personal loans, and interest. Usually a person will get credit depending on their creditworthiness.But it also depends on the type of credit a person will get. A credit bureau will give you ratings which makes you available to certain credit card companies. Credit card's are good and bad for people because you pay for things at the end of the month, while if you use it too much you could end up in debt.Lending money can be good but you should be careful on who you lend money to, and make sure you know that person will pay you back. Your credit report is when you record your spending's through cash or credit cards, while your credit score is how good you are with your credit. For example if you and your friend want to buy 2 different cars, the car dealer will check both of your credit scores. Your credit score is 765 while your friend's is 520, the car dealer will most likely sell a car only to you rather than your friend because you are responsible and more likely to pay your bills on time than your friend.
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Credit Card's:What you need to know

Section 3

A credit card is a card that identifies a person as entitled to have merchandise or services billed on a charge account and it has annual fees and over the limit fees which must be paid. The interest rate is how much you need to pay for using the credit card.You can often times receive perks, use them when you don't have cash, and gain good credit by using them and paying them off. Pay your penalty fees before continuing to use your credit card.But be aware that credit cards have their limits and there is only so much you can pay with it.

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Section 4

Renting instead of paying a mortgage and paying credit card bills on time are great ways to good credit.Always pay all your bills on time