Credit for the new Teen

Elias Mendoza

What is Credit?

Credit is the concept of borrowing money with the promise of paying it back with interest or APR later. Credit can be in the form of Credit Cards, Student Loans, and mortgages. Whether you get to use credit depends on the Credit Bureau a group that gathers and sells consumer info, which give you a Credit Score which is a number between 300-850 that determines the amount of interest you pay on loans etc and your creditworthiness or ability to demonstrate you can pay back on time.


To determine if you can also get personal loans from a lender like bank you need to have all of the above things to qualify. To know if you do or how much you will have to pay in interest you need a credit report which will help find you credit score and see how much you pay and how it could affect your chances to get a loan and other things.


Credit can be useful but there are many problems that ca come from it like debt, overspending, and misusing credit.

Vocabulary Watch

All about Credit Cards

A credit card is a card given to you by your bank with a annual fee that allows you to use it. Credit cards allow you to pay for something by borrowing money but you have to pay it back with interest by the end of the month. The interest it known as APR(Annual Percentage Rate) or the amount of interest that goes on loans for one year. If you don't pay it back or on time you get charged penalty fees. On one card you have a certain limit to use called a Credit Limit where if you go over it you get charged a over-the -limit fee for going over the limit you can use.


These cards are accepted almost anywhere, at any store, in any state. Credit cards are good if you don't have the money to buy something and really need it and also you don't have to carry cash. The problem is that many people tend to go overboard and get several cards and not being able to keep up with the payments and end up in debt they can't get out of it.

Helpful Tips

  • Don't use credit on small purchases
  • consider a loan instead of a credit card
  • Pay credit card balance in full
  • Choose your card wisely
  • Avoid getting too many cards
  • pay payments on time
  • read anything you sign