Buy Now Pay Later

Credit Basics

Credit is borrowing money that you'll pay back to a bank or credit card companies. There are different forms of credit like school, car, and house loans. Every month you have to make a payment of what you owe plus interest. Another form of credit is credit cards. To get credit you must show your creditworthiness because you have to show that you can pay it back in the future. Three factors help to determine your creditworthiness are character, capacity, and capital. Character is your financial responsibility and steady lifestyle. Capacity is will you be able to pay back that loan depending on your income. Finally capital is the value of what you own including savings, investment, and valuable items.


Credit Score - How likely a consumer will pay back his/ her debt in time.

Creditworthiness - Your reliability to pay a loan

Personal Loans - It's unobligated loan to someone

Credit Cards

Borrowed money that you'll pay back later with interests to a credit card company. There are different types of credit cards like MasterCard, Visa, and Discover. You can use credit cards almost everywhere. The type of credit card will determine whether you make regular or revolving charge accounts. Regulars accounts are when you pay the full balance each month. Balance carried from month is revolving accounts. It will help build up your credit in the future.


Annual Fees - Required minimum amount you must pay

Credit Limit - Amount you can spend using your credit card

Interest Rates - Pay entire balance by due date

Smart Consumers

Credit lets consumers buy more expensive items and get loans. Before using your credit card think about getting a loan. Depending on your bill try to pay full balance each month. Chose the best credit card that accommodate your lifestyle best. If someone has a low income job then it's probably best to avoid credit cards because they might not be able to make the payment. Don't over use your credit card because you might not be able to pay it at the end of the month. It takes awhile to get out of credit debt.