The Basics Of Credit .
What is Credit?Credit is another word for 'Borrower'. It tells others how likely you are to pay off your loans. It allows you to buy now and promise a payment later
What are the forms of credit?
Credit is powerful enough that you have to learn how to keep it on a good streak
Loans: Lets you borrow monet that must be paid back with interest. You can obtain a loan for specific needs such as car insurance , college, and buying a house.
- Secured Loans are guaranteed by collateral, which is a item of equal or greater value than the amount of the loan you want to take out.
-- Unsecured Loans are based on your credit score
Installment Loans: Its a fixed payment for a limited time just like a mortgage and auto loan.
Credit Cards: A personal credit , allows to repeat transactions up to the maximum credit limit.
What costs are associated with credit?
Interest: Percentage of a lonesome of money charged for use .
Fees: A payment made for a professional reason.
What determines if someone gets credit and how much they get?
You can apply for credit cards, department store cards and as much as you apply and pay your cards or loans off - you'll have a bigger chance in increasing your credit score.
Credit Report: Contains information about your borrowing history .
Lender: That advances cash to the borrower for a stated period and for a fixed or variable rate of interest, with or without a security other than the borrowers signatures.
Credit Cards: What You Need To Know .
Its a payment card issued by your bank, business etc. It allows you to pay for goods and service for the promise that the cardholder will pay them back.
Where can you use credit cards?
Anywhere that allows Visa, MasterCard, American Express , and Discover
What are the benefits and costs of using credit cards?
Some cards give rewards and miles and points away; Every card has rewards even if you have to earn it.
*Gives you APR, Over the limit fees, and some cards give a credit limit .
Smart Consumers: Don't Fall Into The Credit Card Trap
- Don't loan your cards to anybody!
- Don't keep your Social Security in your wallet.
- Sign your name on your cards with permanent ink .
- Memorize your PIN but, DO NOT give your PIN number out .
- ONLY carry the cards your going to use .
- Always check your accounts if anything .