Credit Newsletter

Carlos Quizhpe

The Basics of Credit

● What is credit?

Credit is privilege of borrowing money but having to pay for it in the future. When you have a credit card you can now add up your credit score by every bill that you pay on time. When you start to pay off your bills you will have a credit report that shows your bill history or credit history. A credit bureau is a company that collects everyone's credit ratings.

● What are the forms of credit?

There are two types of credit one of them are personal loans where you can borrow money for personal use and the second one is credit cards that allow you to pay for things without using money.

● What costs are associated with credit?

The costs that are associated with credit is interest (APR) that is calculated every year with a percentage amount.

● What determines if someone gets credit and how much they

To determine ones creditworthiness which shows how trustful you are to be paying bills on time. A lender is a person that judges someone by the three "c's".

Vocabulary Watch

Credit Cards: What you need to know

● What is a credit card?

A credit card is a plastic card that is used to pay for things instead of using cash. Once you get a credit card you automatically have a credit limit that limits you from spending too much. If you were to pass that limit you would have to pay additional fees called over-the-limit fee. Annual fees comes with the credit cards because of it being used.

● Where can you use credit cards?

You can use credit cards mostly anywhere most of the time they have signs on which cards they accept. If bills are not paid on time you will get a penalty fee for not paying on time.

● What are the benefits and costs of using credit cards?

The benefits of having a credit card is not having to carry around money or change. You don't have to worry about stealing because yo can just cancel your card right away if you lost the card. When you pay the bills on time you won't be charged with an interest rate.

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Smart Consumers: Don'r fall for the credit card trick

You should know when and where to be using your credit card. I do not think that you should always use a credit card, you have to be smart with your purchases. Paying for things that are small is a good start because it will be easier to pay off. Once you get the use of things and you know you can handle all the bills you should still double check everything such as prices because you never know if you will get scammed. To stop people from stealing your money make sure that you are the only one that knows the pin to your account as well as if you lose the card you should cancel right away. Starting off slow and smart will lead you into good credit. The most important thing is to pay your bills on time so that you will not be penalized and so you maintain god credit.