Credit Newsletter

Kathy Wojtulewicz

Section 1: The Basics of Credit

  • A credit is the ability to be able to borrow money from a bank or lender, in return a payment in the future.
  • Forms of credit are, a credit card or a personal loan.
  • Credit is not a fee, but you must pay APR annual interest.
  • To get credit you must demonstrate your creditworthiness( Capital, capacity, Character) also, must have a good credit report, that shows your credit score this is provided by the credit Bureaus.

Section 2: Vocabulary Watch

  • Credit Score: This is the number that determines your creditworthiness. The higher the score the better it is for you because you will be able to get higher loans. Your credit score is based off if you pay your bills on time. Also if you have low debt, a long history and not to many credit cards.
  • Credit: Is the ability to be able to borrow money from a lender and pay it back later.This is important because you can buy what you want now and pay it back later in payments throughout the years but along with credit comes an APR the % depends on the lender.
  • Interest: This the % put on your loan extra money you pay. This is important because it's better to have a lower APR ( interest) on your loans. This would make you pay less money on the loan you get .

Sections 3: Credit Cards: What you need to know

  • A credit card is money that you use off a card and pay back later, there is a credit limit on each card, certain amount of money you are able to spend up to, amount of money you are approved on.Each card comes with a different APR, depending on your credit score. You might have an annual fee like $15 yearly for the card.
  • You can use your credit card anywhere, any store.
  • The benefits of a credit card are that it will build your credit score if you pay everything on time. The cost of using your credit card is if you do not pay your amount back on time you get a penalty fee with a high interest rate. If you go over-the-limit you get a over the limit fee or you will get declined.

Section 4: Smart Consumers: Don’t Fall Into the Credit Card Trap

Some tips I will give you to use a credit card are:

1.Do NOT sign up for cards on your college campus

2.When you use your credit card try paying back in full, because you wont have to pay interest later on it

3. Do not go over your limit it will cost you in the end

4.Renew your pin every 3 years, Not birthday, or address

5.If you use it rarely or never. Try using it at least once a month on like gas to build your credit and pay it back in full.