Credit Newsletter

Kim De Villa Period 9

The Basics of Credit

What is credit?

Credit is the ability to borrow money in return to be paying it off in the future. Once you own a credit card you can start having a credit score which tells you whether or not you have good or bad credit. A credit report is your history of paying bills, like a summary of everything. The credit bureau is a company that collects an individuals credit ratings.


What are the forms of credit?

There is two types of credit one would be credit cards which is a plastic card that allows you to pay for the items you want to purchase. A personal loan is a loan that a consumer is granted for personal use.


What cost are associated with credit?

The costs that are associated with credit is interest (APR).


What determines if someone gets credit and how much they get?

To determine ones creditworthiness which shows how trusted you are to be paying bills on time. A lender is a person that determines/judges someone else 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 you can use to pay for things instead of using cash. Every time you receive a credit card there is something called a credit limit that limits you on your spending's. If you were to go over that limit you would have to pay extra and that is called over-the-limit fee. With every credit card you are required to pay an annual fee for having the card.


Where can you use credit cards?

Credit cards are pretty much accepted at any place. Once you swipe your card you can be penalized by a fee if you do not pay on time such as a penalty fee.


What are the benefits and costs of using credit cards?

The benefits are that you do not have to carry around money or lose change. you do not have to worry about someone else using it just as long as you cancel it when you have lost it. When you pay the bills on time you will not be charged with an interest rate. If you do not pay by the date you will have to pay that interest rate.

Smart Consumers: Don't Fall Into The Credit Card Trap

When using credit cards you should always know your limit because if you were to go over that limit you will have to pay extra fees and possibly have/get bad credit. As you are just starting off you should always start off small then very slowly go bigger in your limits. Never take more than you can give back because that is how you can easily get bad credit. So always be smart with your money and always pay for smaller amounts so, that it is easier to pay off in the end.