Brenda Solis

Basics of credit

1) What is a credit? The ability to borrow money in return for a promise of future payment. "Buy now pay later"

2) What are the forms of credit? The two forms of credit are Personal Loans and Credit cards

3) What costs are associated with credit? Credit is not free

4) What determines if someone gets credit and how much they get? A person must demonstrate your creditworthiness. A person credit Bureau Which provides a persons credit history aka credit report.


1) Credit Bureau- A company that collects the credit ratings of individuals and makes them available to credit card companies, financial institutions, etc

2) Creditworthiness- trustworthy with money as based on a person's credit history; a general qualification for borrowing.

3) Credit- The ability to obtain goods or services before payment, based on the trust that payment will be made in the future: "unlimited credit".

Credit Cards

Credit card- Able to borrow money in return for a promise of future payment

Aka " Buy Now... Pay Later"

-Credit cards can be used at stores, restaurants, buying things online

-Some common credit cards: VISA, MasterCard, Discover

Regular charge accounts

  • Balance is paid in full

Revolving charge accounts

  • Balance can be carried from month to month

Establishing credit now will allow you to easily use credit in the future

- Best if you begin when your 18

Credit card costs

Annual Fee

  • The annual amount you must pay is $15-$100

Interest (APR)

  • Interests are between 0%- 29% , Pay all balanced by due date= no interest

Credit Limits

  • Max amount you can spend using card
  • Over limit= Fee or declined


  • Over-the-limit
  • Late fees- making payments late
  • Penalty fees- additional fees due to late payment, over credit limit, etc.

- Can result in an increase in interest rate

Being Safe

Ways of being safe is before signing anything make sure you always read everything what you're signing.

And always limit yourself to how many credit cards you have.