All about Credit!

By: Joel Santos

Section 1: The basics of credit

What is credit? credit is the ability to get something before you pay.

What are the forms of credit? the forms of credit are personal loans and credit card.

What costs are associated with credit? The costs that are presented to you while having credit is every time you get something of your the credit you get charged with interest ( APR).

What determines if someone gets credit and how much they get? How this works is that credit card companies or credit bureaus get your credit report and credit score and sell it to lenders and companies so they know your credit worthiness and they estimate how much credit they should give you. The best credit score to have is between 350 to 800.

Section 2: terms to know!

electronic transfer: Is a transfer that is between banks and companies that they can send money electronically between them both.

endorsement: Is a recommendation of a product through a commercial.

Co-Pay: Is a signature that states that you are the second person and pays when the first person can't .

Section 3: Credit cards: what you need to know

What is a credit card? A credit card is a plastic card that you use that contains a certain Credit limit that you can use as money when you don't have any.

Where can you use credit cards? You can use your credit card on any store or any product that accepts them. You use it at the check out like real money only you don't pay until the bill comes.

What are the benefits and costs of using credit cards? The benefits for using a credit card is if there are emergencies and if you need to buy something quick. You can always use you card. The costs are the Annual fees and interest rates that you get charged when you use it. And also their are penalty fees and over the limit fees if you either pay late or go over your limit.

Section 4: Smart Consumers: Don't Fall Into the Credit Card Trap

Tips: The best tips always come from people who have credit cards and good credit. My dad is a perfect example. His tips for me where that he buys things on credit but pays them of before the bill is due. So he pays the full amount of the purchase before the bill comes. That way he doesn't get charged interest and also avoids going into debt. Some other tips are don't use your card unless you really have to and its an emergency. And also play it smart pay your bills and don't go over so you won't have bad credit which will haunt you for life.