Kaitlin Balaja

Section 1: The Basics of Credit

Credit allows you to borrow money with the promise of a future payment. Credit can be given in either Credit Cards or Loans. But along with credit comes along Interest. You must pay an Annual Percent Rate. Before receiving credit you have too prove your creditworthiness. You must prove that your someone that is reliable at paying back loans and have a sense of financial responsibility.

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Section 2: Vocabulary Watch

-In order to receive credit, you have to prove your creditworthiness. This assesses your likelihood to return money or any type of loan that is borrowed to you. Your history of repayment and credit score is looked into.

-But when getting credit remember interest. For things such as credit and loans, interest is added for a whole year. Interest is a fee paid on borrowed assets. When you go to return the loan you will be required to pay more than you borrowed.

-Taking out a loan is often what people have to do in order to pay for things they need. A loan can be borrowed from family, friends, or even a bank. Loans, especially those borrowed from by a bank, are usually expected to be paid back with interest.

Section 3: Credit Cards: What You Need to Know

Credit cards a type of payment provided to you by a bank or business. Nearly every store, resturant, or business allows you to use credit cards. Credit cards are nice to use when you are saving up money to afford something. If at the time you do not have the money you can use a credit card and pay for that item at the end of the month. But if you miss making your card payment at the end of the month you wil receive a Penalty Fee. These fees will add up and create you credit score to decrease. Also if you choose to use a credit card you wil also be expected to pay Interest Rates.
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Section 4: Smart Consumers: Don't Fall Into the Credit Card Trap

If you choose to get and use a credit card there are many things to stay aware of. You want to be sure that what you're using the card on is truely important or neccessary. If you are just using a credit card for everything your end of the month payment will begin to add up along with your interest rates. It's best not to get credit cards until you are out of school and on your own. If you get a credit card when you are still in school you may be tempted to use it whenever you go out and all your school expenses. And when in school you may have a job but it may not be enough to pay off you large credit card bills.
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