Credit Newsletter

Section 1: The Basics of Credit

What is credit?

Credit makes big purchases possible but the Lender has to pay it back

What are the forms of credit?

Personal loans, Car loans, Credit Cards

What costs are associated with credit?

Interest (APR)

What determines if someone gets credit and how much they get?

The Four C's:

  • Character - If trustworthy
  • Capacity - Able to pay back
  • Creditworthiness - History of paying back
  • Collateral - Can’t pay back they take your things

Credit Score

Section 3: Credit Cards: What You Need To Know

What is a credit card?

A good way to establish credit

Where can you use credit cards?

Stores, gas stations and anywhere they are accepted.

What are the benefits and costs of using credit cards?

Some benefits are that your credit score goes up as you use a credit card and pay on time. Another benefit is that with a high credit score can get you a bigger loan. Some costs are the fees that could come with it like Annual Fees and Penalty Fees. Some credit cards have a Credit Limit which means if you go Over-the-limit you get fined.

Section 4: Tips

  • Only buy what you can pay off in a month
  • Sign back of credit card
  • Don't share info
  • Pay more than minimum required
  • Don't max
  • Keep track of what you charge
  • Pay on time