Credit Newsletter

what you need to know about credit

Learning about credit

  • The basics
  • vocab corner
  • being a smart consumer
  • quick scoop: credit cards

The Basics

Credit is being allowed to purchase something now and pay later. Credit comes in many ways from a credit card to a loan for a car and even a personal loan. All usage of credit should be taken seriously. To take out a loan your creditworthiness is looked at by the lender. A big part of that is your credit score (the higher the better) which is determined by the credit bureau. On this loan, you will have to pay not just loan, but interest on the loan.

Vocab Corner

Quick Scoop: Credit Cards

A credit card is an issued card by a bank that allows you to purchase goods and services on credit. You can use your credit card at almost all locations. At the end of the month you need to repay the money. Interest will also be charged this is called the annual percentage rate. Normally a card charges an annual fee, but this is often waived. However by wary, credit card need to be used carefully. Being late on payments will result in late fees. The credit card company also gives you a limit and going over this limit will also incur a fee.

Being a smart consumer

As mentioned before, using credit is a serious decision. Ideally credit should be used to rack up "smart" debt like loans for a house or for education. Don't use credit to buy expensive luxuries you can't afford. Also monitor your credit transactions to protect against identity theft.