Credit Newsletter

Angie Tayourane

The Basics of Credit

What is Credit?

  • Credit is the ability to obtain goods and or services by borrowing money. The lender, which is your bank, lends you a certain amount of money each month to spend, trusting that the payment will be made on time by the end of each month.

What are the forms of credit?

  • Personal Loan
  • House Loans
  • Car Loans
  • School Loans

What costs are associated with credit?

  • Credit it not free. APR Interest rates must be payed annually.

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

  • The amount of money given each month is determined by the Credit Bureau. They will look at your Credit Report, which would contain your history of late payments and total debt, that will define your Creditworthiness and Credit Score.

Vocabulary Watch

Credit Cards: What You Need to Know

What is a credit card?

  • Card issues by the payment that is portable and ready to use on goods and or services on credit. It allows you to easily use credit in your future purchases.

Where can you use credit cards?

  • Can be used whenever and wherever.

What are the benefits and cost of using credit card?

  • Credit cards are ready to use whenever you are, but they also come with limitations and fees. They have Annual Fee which must be paid and if the entire balance is paid by due date than it's possible for no Interest APR. Be careful with your spending because banks place Credit Limits on your card so you do not over spend! There are plenty of fees that the card owner can receive if they are not responsible too keep up with their payments and spendings such as Penalty Fees and Over-the-limit fee.

Don't Fall Into the Credit Card Trap!

Credit cards are not the safest way to spend your money, consider these tips when using a credit card

  • Keep track of your spending to prevent over-the-limit fees
  • Sign up for a card at a bank with a professional teller, no where else
  • Ask guardian about their thoughts and tips about having/using a credit card
  • Before spending your card, make sure you're using it at a legitimate location/store/website to prevent fraud or your information to be stolen
  • Set a reminder to make your monthly payments that way your won't be late on you bill and lower your credit score!