Credit newsletter

Brittany Mascheri period 10

section 1: basics of credit

  • Credit is the ability to lend or borrow money with the intention of paying it back. buy now, pay back later.
  • The forms of credit can be either credit card or debit card.
  • In credit, there are two kinds of cost. When credit is used, there are fees and interest to pay either right away, or later.
  • A person's credit score, past credit report, and their credit worthiness is what determines whether they are allowed credit and the amount of personal loans they may receive. The credit bureau also determines if one is allowed to have credit.

section 2: vocabulary words

  • A personal loan can be used for spending at a store, on a date, or an emergency. There are benefits and disadvantages along with loans. If the loan is not paid, interest builds up and it becomes more than it was in the first place.
  • Credit worthiness depends on how much money someone spends, how well they are at paying back their bill after each month, and how responsible they are when it comes to money.
  • The credit bureau lends money to people in a card form, saying you have X amount of money you can spend each month as long as you pay it back.

Section 3: Credit Cards: What You Need to Know

  • A credit card is a plastic card that allows you to spend money. Some credit cards require you to pay back the bill in full, and some allow monthly payments. There is a credit limit on all credit cards. That amount may vary.
  • You can use a credit card just about anywhere. At a store, a restaurant, even at a baseball game. If you spend too much at that baseball game though, you will be charged an over the limit fee. If you fail to pay that, you will then receive a penalty fee.
  • A credit card can be a good thing for money at that very moment, but is bad because the more you use the higher the interest becomes. You also have annual fees to pay just because you have a credit card.

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

If you decide to get a credit card, the overall thing is responsibility. If you are willing to pay back all the money that you are lent, and have the funds available to do that, then a credit card is good for you. Watch out for the fees that come along with some ATMs and banks. Be sure to not fall into credit debt and stay on top of the payments. The worst thing is being older and having much debt.