Credit: It's important to know.
By: Summer Siemieniak
Basics of Credit
What do these mean?
Creditworthiness is your ability to pay back., the value of what you buy, and sense of financial responsibility. You need to have a good job, you need to be able to make payment or your mortgage and car payment otherwise your credit score suffers.
What is a credit score? A credit score is a number to show your creditworthiness. It also helps with what your interest on your credit card payments will be. The lower your credit score, the higher your rate will be. Then you fall into debt.
Then we have the Credit Bureau. They keep record of everything from bounced checks to filing bankruptcy. These are the people that can help improve your credit score and file it out to loan places and real estate agencies so you can buy a house. You don't want to be on their bad side.
Credit cards: What you need to know.
Just some tips.
- If you attain a credit card, don't buy everything you want. You DO HAVE TO PAY IT BACK! IT'S NOT FREE MONEY!
- Don't fall into credit card debt, once you're in a hole its hard to get out.
- Make all your payments on time. Car payment, Electric bill, water bill, ect. Stuff like this will lower your credit score.
- Don't avoid credit, you'll need it to buy nice things like an engagement ring.
- Avoid too many cards. One is enough. Two if seriously needed.
- Your credit debt can contribute to the failing economy. So be a smart consumer.
- If you get a credit card in the mail that you don't want, cut it up. You don't want someone to steal your identity and ruin your credit.