By: Dakota Wissing

Section 1: The basics of Credit

Credit plays a mandatory role in everyone once you get in the real world. As long as you learn the ways of managing credit successfully, you'll be able to use it to your best advantage. What is credit you ask? Credit is the ability to borrow money in return for a promise of future payment. This is also known as "Buy now...Pay Later." The two forms of credit are: Loans and Credit Cards. Loans are when you are borrowed money but you must pay back along with a certain amount of interest. Credit Cards are the most often seen type of personal credit though. A credit card has a certain amount of credit limit and the bank allows you take make repeated transactions until you reach that amount of credit limit. At the end of each month you must pay the lender back them amount that you spent under Credit. The longer you take to pay them back the more interest that'll add up on your account. Credit is not free though, you must pay an interest of 15% per year. Creditworthiness determined whether or not you are allowed to receive credit and if you are able to receive certain things. If your credit is low, it is because you either haven't established enough credit or you haven't paid off the loans or bills on time. If you have a low credit if determined whether you are able to get a house, buy a car and even get school loans. If you are worried about what your credit, there are some free websites where you can check your credit score and your credit reports for free one time, after that you must pay. You should make sure that you are checking from a responsible credit bureau.

Section 3: Credit Cards: What you need to know.

A credit Card is a plastic card issued by a bank, business, etc. for the purchase of goods or services on credit until you reach the credit limit. Although you can use a credit card in any store or business, it is not free. Whenever you buy something under Credit you must pay the lender back at the end of the month along with a certain amount of interest. If you go over the limit that you can spend you must pay for a over-the-limit fee and if you do not pay the bank back at the end of the month you will also have to pay a penalty fee. If you go over the limit you and its too much for you to pay all at once then you should ask the bank if you can make payments. the good thing about Credit cards is that if you use it right you can build up your credit fast. Once you get your credit low, its harder to bring it back up. So just make sure you pay your payments on time and look on responsible credit check businesses that'll keep you updated on how your credit is doing.

Section 4: Smart Consumers: Don't Fall into the Credit Card trap.

It may be easy to fall into the trap that a lot of consumers fall into because they get so used to the fact that they are able to buy now and pay later. Don't think of it as your money, because its not. Continuously check your credit, pay your bills on time, and be safe. Make sure when your checking your credit online that it is not a fake. People can also steal your identity if its fake. Also, the best way to have good credit is don't take a lot of loans.