The Leyden Newsletter
at West Leyden
Basics of Credit
You're 18 you can finally apply for credit , but before you start there are a few things you should now about credit. Credit is the ability to make purchases that you could not make at the time. Credit is like borrowing money except you're borrowing money from a bank and have to pay interest. There are different types of credit. For example, credit cards, student loans, car loans, etc. In order to qualify for this lenders use your credit worthiness and credit scores that are given by the Credit Bureau. Using your Credit Report they can determine if you qualify and for how much credit you qualify.
Things to Know About Credit Cards
A credit card is a plastic card, which you apply for, that allows you to make purchases on credit. This cards are given to you by a bank. There are many different types of credit cards that offer different features. For example, some give you exclusive bonuses like front row tickets to a basketball game. Some cards are better fit for better fit for others, so before you get a credit card make sure that you know about the interest rates, fees, and policy that comes along with it. Some have more fees than others like late fees, over the credit fees,etc., but have more luxurious features. This fees are charged on you if you don not make payments on time or go over the limit of how much credit you can use over a period of time. Some credit cards also charge an annual fee for the credit service that they offer you. Some credit cards are more expensive than others, so make sure to do your homework and research what card is right for you.
The Credit Card Trap
Credit Card Usage Tips
Credit Cards can either be very helpful or very destructive when it comes to your financial status. When people first get their credit cards they have no idea how to use them correctly.Without the proper usage of these cards it can cause you to get into a lot of debt. Follow these tips to avoid any future debt:
- Use credit cards when needed
- Make sure to keep track of your credit usage, so you don't go over your credit limit.
- Make payments on time and avoid getting late fees.
- Use debit over credit
- Know about your APR