Credit Newsletter

Marta Ramirez & Hector Esparza

The Basic of Credit

  • Credit is the ability to borrow money for a future promise of returning it later.
  • Credit is in the form of credit cards and personal loans.
  • However credit is not free; you must pay interest whenever you pay late. The interest is known as the Annual Percent Rate.
  • The way you receive credit and how much you receive is by your credit score. Your credit score allows the lender to know how creditworthiness you are. Lenders judge you based on your character, capacity and capital. To find our your credit score the credit bureau sends you a credit report.

Credit Cards: What You Need to Know

  • Credit Cards are cards that allow you to "buy now pay later". Some common ones are Discover, MasterCard, and VISA. Credit cards have an Annual Percent Rate, which is the interest you pay for making a late payment. Some credit cards also have Annual Fees which is a fee you pay for just having a card with them even if you don't use it.
  • You can use credit cards at store. Also you can withdraw money using credit cards as well as make balance transfers.
  • Some benefits of having a credit card are: you get cash back, points, or airline miles. However there are some cost to having a credit card. If you go over the credit card limit you get an over-the-limit fee which is the penalty fee for going over.

Smart Consumers: Don’t Fall Into the Credit Card Trap

  2. Don't go over the limit
  3. Don't buy unnecessary items because you can
  4. Pay on time so you won't get penalized
What's a Credit Card?