Credit Newsletter

Information

Section 1: The Basics of Credit

Credit is money given to you to spend that you do not have with the promise that you will pay it back, wen you pay it back though, that usually includes interest. It's just like a

There different forms of credit: good credit, bad credit, store credit, etc. There are also different costs that go along with credit cards. You can decide to let your card go past a certain amount in case of an emergency or decide not to allow that option. There are many different factors that go along with how much credit a person receives it depends on their credit worthiness that is determined by these factors: ones credit history, your payment history, etc. This information is given by the Credit Bureau. This is all summed up and easy to identify by a persons credit score.

Section 2: Vocabulary Watch

You must be very careful when using a credit card. Pay back the money you owe as soon as possible. The worst thing to do is to make a late payment especially for on utilities. If you don't make payments on time and your light, cable, or water gets shut off then they will call the Credit Bureau. The credit Bureau is responsible for giving you your credit score, which if bad, can cause some serious damage to your future expenses. Purchases such as, a new home, wedding ring, a new car, and more will be a huge struggle for someone who has a bad credit score. The reason for this is because your credit score is used to determine your creditworthiness , which simply means whether your reliable enough to pay your bills on time.

Section 3: Credit Cards: What You Need to Know

A credit card is a card that you can use to cover an expense. It's borrowed money that you must pay back as soon as you are able to. The benefit of having it is that you can use it whenever an emergency occurs or a big expense is coming your way and you have no money. However, when you pay it back you must pay additional money because of interest rate and whenever you're late on paying back you must also pay a penalty fee. Whenever you're late on a payment you also start to create bad credit which snowballs into a bunch of other consequences. This also goes for whenever you go over your credit card limit, you will receive an over-the-limit-fee. This is all accumulated with the annual fee you're given which can range between 15-100$

Section 4: Smart Consumers:Don't Fall into the Credit Card Trap.

Make sure not to lose your credit card and if you do , cancel it immediately . Be a smart buyer.