Credit Newsletter


The Basics of Credit

What is credit? Credit is the ability to borrow money in return for a promise of future payment. Credit is not free, you have pay interest.

What are the forms of credit? Forms of credit are Loans from lenders, and credit cards.

What costs are associated with credit? House, car, and school.

What determines if someone gets credit and how much they get? Must demonstrate your creditworthiness, your reliability to pay back a loan, judges use the 3 C's of credit which are Character, Capacity, and Capital. Check your credit score, credit report, and credit bureau.

Vocabulary Watch

Credit Cards What You Need to Know

What is a credit card? A credit card is for purchases of goods or services on credit. There is a required Annual Fee which means you must pay $15-$100 annually. Also their is an Interest Rate if you don't pay on time which can be up to 0% to 29%. Be sure not to go Over-the-limit which means you reached the Credit limit, and you maxed your credit amount. Do not make your payments late or you will get a Penalty Fee which is just an additional payment.

Where can you use credit cards? You can use credit cards pretty much anywhere such as Grocery Store, Gas stations, Restaurants etc.

What are the benefits and costs of using credit cards? A benefit would be gaining credit which would allow a consumer to purchase more goods. This would then raise the economy because it would create job opportunity's. Some costs would be grocery shopping, gas, needs and wants such as shampoo, and going out to the movies.

Smart Consumers: Don't Fall Into the Credit Card Trap

You would like to control your costs, and should avoid minimum payment trap. You should also consider getting a loan over a credit card because loans have more low interest rates. Choose card wisely, least expensive; greatest benefits. Also avoid to many credit cards, pay cash, don't miss payments, read what you sign, avoid identity theft, seek credit counseling if needed, and beware of bankruptcy.