Credit

Andriy Berbeka

Section 1: The Basics of Credit

● What is credit?

Credit - is the ability to borrow money in return for a promise of future payment. To get credit, you must demonstrate your creditworthiness.


● What are the forms of credit?


Credit form is Credit Cards and Personal Loans



● What costs are associated with credit?

Credit is not free. You must pay interest. To have a credit is good because, credit allows consumers to purchase more goods. But sometime people overuse credit, so they must pay debit . Lenders judge.


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

Credit is your Credit information, Credit Score. Those are Credit report. If you want to know what is your credit you need go to Credit Bureaus.

Section 2: Vocabulary Watch

Creditworthiness - An assessment of the likelihood that a borrower will default on their debt obligations. It is based upon factors, such as their history of repayment and their credit score.


Credit Cards - is a payment card issued to users as a system of payment. It allows the cardholder to pay for goods and services based on the holder's promise to pay for them.


Interest (APR) - It is thus the fee for the privilege of borrowing money. The fee represents the price a person pays for the ability to spend / consume in the present instead of having to wait for the future to do so.

Section 3: Credit Cards: What You Need to Know

● What is a credit card?

Credit card is a payment card issued to users as a system of payment. It allows the cardholder to pay for goods and services based on the holder's promise to pay for them.

For same credits rad you need pay Annual Fees. Also Credit card has some Credit limit


● Where can you use credit cards?

Shopping, buy goods, online shopping.


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


Benefits of credit card is to buy goods now and pay them later, don't worried about cash.

Costs of credit card is if you paid later then they going to charge money for you, you can go over the limit fee and you also need paid Penalty Fees.


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

Credit card is good, because you can buy some stuff and pay just a minimum payment but if you paid just minimum the bank going to charge penalty fee. So it's all about you if you want to open credit card at 18 years is not good and not bed you can use that credit card but you need to be smart and you need think that what you need buy on the card don't forget you have a limit and if you pay later its all going to charge money from you. I think you can open the credit card at when you get 21 years old. Because you going to be more smart not so young and you will be more respective to your life and you going to think better.