Credit Newsletter

Knowing how to use it


Forms of Credit

  • Loans
  • Credit cards
Your creditworthiness will determine whether a lender will lend a good loan, if any. When deciding to get a loan or credit card, we must be conscious of the fact that there is also the added cost of interest to think about, also called an APR (annual percentage rate).

All of this information will be sent to the Credit Bureau, ultimately ending on your Credit report. Again, the information on it determines creditworthiness. So this may work in your favor or against you. If you choose to pay on time and make sure everything goes nicely, you should have a good credit score. Missing even one payment will affect your credit score greatly. Again, affecting creditworthiness as well.

Terms to know

Credit score: A number that represents your creditworthiness

Credit report: a record of your past borrowing and repaying, this also includes late payments and bankruptcy.

Creditworthiness: trustworthiness with money based on a persons credit history. A qualification for borrowing money.

Credit Cards !

A simple piece of plastic issued to users to buy goods or services & you can use them almost anywhere.They're simple to use when you don't have the amount that is required at the time, and if used wisely, your credit score will benefit from this. You must be careful on what you use them for, always remember this money is not yours, you have to pay it back, with interest! At the end of every year, there is a fee that must be paid for the privilege of having the card. This is called the Annual fee.

Things to keep in mind

  • The interest fees(APR): Make sure they are something that is affordable, look around for cards that offer what best suits you.
  • Be aware of the Credit Limit: The credit limit is the maximum amount that lender or service will extend to you.
  • If you violate the terms of the card lender, you must pay what is called Penalty fees
  • Over the limit fee is what you will get is charged if you exceed your credit limit.

Use it safely !

  • Build a good credit score
  • Know how much debt you can handle
  • Aim for paying bills in full each month
  • Make a budget and stick to it