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.
Section 2: Vocabulary Watch
-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.