Credit Project

Basics of Credit

What is Credit? Credit is borrowed money that you can use to purchase goods and services when you need them It is how likely you are to pay off your debts. There are different types of credit like secured,unsecured,revolving,and installment.

Secured:guarantees that it will be paid back by putting a lien on an asset you own.

unsecured:you give your word that you will repay your borrower

revolving: creditor has approved you for a set amount(credit limit) and you can access the credit whenever you want and as often as you want.

Installment:you borrow a certain amount of money for a set period of time and you repay the money by making a series of fixed(set) payments

Examples of credit are student loans, credit cards, house loans,etc.

Credit Cards

A credit card is a plastic card used to make purchases now and pay for them later; mini-loans; interest applies to unpaid balances; fees for late payments. A credit can be used almost anywhere.
  • The benefits of using a credit card is Fraud Protection and Rewards.

  • The costs of using credit cards is that you can go into debt, Spend 12-18% more of your money.