Credit Newsletter

Adrian Guillen

Section 1: The Basics of Credit

What is credit? The ability to borrow $$ in return for a promise of future payment and its based on your creditworthiness. What are the forms of credit? there's THREE types of credit INSTALLMENT, REVOLVING and OPEN credit. What costs are associated with credit? its not a fee you have to pay credit is based on Interest that lenders are giving you in other word the bank. What determines if someone gets credit and how much they get? The Credit Bureau will check your Credit Report to see if you can pay back and it also depends on how your is if you have low credit they'll reject you but if you have good credit they accept it they'll check your credit cards to see how your payments are to see if your worthy of a loanit helps you get a personal loan based on your payments and for your own reasons .

Section 2: Vocabulary Watch

OVERDRAFT: A deficit in a bank account caused by drawing more money than the account holds

OVERDRAWING: Draw money from (one's bank account) in excess of what the account holds

DEDUCTIBLE: Able to be deducted, esp. from taxable income or tax to be paid

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Section 3: Credit Cards: What You Need to Know

what is a credit card? a credit card is card which you can spend you dont have but your promising to pay at the end of the month to pay annual fees but on every credit card there's different credit limit that you can waste. Where can you use credit cards? you can basically use credit cards anywhere they accept them because it so common for people paying with it instead of cash. What are the benefits and costs of using credit cards? the benefits of a credit card is that if you dont have the money to buy what you want you can use the credit card so you can still get it but your gonna have to end up paying interest fee's at the end of the month for it. but if you dont pay in time you get penalty fee's also if you go over your limit then you get a over the limit fee.
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Section 4: Smart Consumers: Don’t Fall Into the Credit Card Trap

a good way so you dont fall into debt is by avoiding spending over your budget ona crdit card dont go on a spree becasue then your gonna have to pay over the limit fee's or very high monthly payments each month for the spending spree. try to keep the spending on the low so your interest rates dont go up when you apply for another credit card in the future and make sure to pay your bills becasue if you dont then youll hurt your credit score and it'll be hard to get credit cards and loans and other things you need with credit score.
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