Credit Newsletter

By: Brian Rodriguez

Section 1: The Basics Of Credit

Questions to answer:

● What is credit?

- The ability to get a personal loan (money) from the bank but in the future you have to pay interest. Once you get a credit account you receive a credit history. You can check how you credit is going but a credit bureau is a that collects information about your credit history and sells it to lenders.

● What are the forms of credit?

- There are two types of forms you can borrow money. The basics are: loans and credit card accounts.

● What costs are associated with credit?

- You credit score is the number of representatives who represent the creditworthiness of a person so that person will pay his/her debts.

● What determines if someone gets credit and how much they get?

- Your creditworthiness determines whether or not you are entitled to get credit. A credit report will be an individuals history with a history of bills payed on time. If your bills aren't payed on time or you borrowed money from the bank and can't pay them back odds are you will destroy you credit.

Section 2: Vocabulary Watch

Credit Score: Is the final saying whether or not you are entitled to receive a credit card or receive loans from the bank. The banks will check your history bills if you payed them on time or not to see who they're lending the cash to. They need to be sure if you'll pay them back when interest is applied.

Personal Loans: These are methods that bank allows you make when money is needed. Not everyone is entitled to receive a loan because of their history background with their credit.

Creditworthiness: When this method is based upon your history banks will have your trust when you borrow money. It won't be hard for you to get lend money because your credit history says it all.

Section 3: Credit Cards: What You Need to Know

Questions to answer:

● What is a credit card?

- A little piece of plastic where your issues you. It allows you to buy anything but waste to much and you'll be penalized. When you buy a good or service and you pay with your credit card it means you're borrowing money from the bank which means that the bank will want their money back but they'll charge you with interest.

● Where can you use credit cards?

- You can use credit cards anywhere if its wasting it on clothes, appliances, etc. But if you go over than what your credit really is you get fined an over the limit fee. The amount of credit you receive is determine on your credit limit. If your good is at a higher expense you'll be reaching your thus being fined.

● What are the benefits and costs of using credit cards?

- The costs of using a credit card is the annual fees yearly fee charged by credit grantors for the privilege of using s credit card. But make a mistake on not paying an item on time and you will be charged with a penalty fee.

Section 4: Smart Consumers: Don’t Fall Into the Credit Card Trap

- When you reach the certain age of credit card use which will be when you turn 18 years old, many banks are going to offer their best deal for you so you can get a credit card. They pull you in because they know that 18 years old are the ones who are still young and don't actually think about the stuff they buy. Whatever they see they get. And that's when the banks take advantage of you. They know some of them will buy and buy any item and that's when many of them will get fined. Once you get fined interest will be getting applied and the more you wait to pay your debt the more money you will owe in the future. This is why when you get a credit you need to be careful on how to use it. Make smart buying decisions when your going to swipe the card.