Get Informed

Jasmin De La Cruz

Section One: The Basics of Credit

Credit is given the chance to borrow money an have a certain amount of time to pay it back. Forms of credit include home, loans, schools, and credit cards.Credit is not free; you must pay interest. If you aren't good in paying back the money you owe your credit score gets hurt and your credit worthiness will not be what it should be. It'll make you less liable to get money borrowed. Lenders are the ones who determine whether your credit worthiness is good enough or not. Lenders get their information from the credit bureau who make credit reports on you and how well you are on your credit card payments. Personal loans are also reflected on you credit history and determines whether they are willing to give you a certain amount of money for personal use.

Section Two: Vocabulary Watch

Credit worthiness depends on your three C's: Capitol, Capacity, and Character.

Capitol is the value of what you own any savings or property that you've invested on. Capacity deals with your ability to pay back the money you may receive, depending on your income. And character the sense of you financial responsibility, if your stable, had a home for long time, a steady job, ect.

Section Three: Credit Cards: What You Need To Know

A credit card is a card given by a business that believes your reliable enough to be given money. The credit card will have a credit limit and it will vary throughout each business. Annual fees is a required fee that you must pay varies from $15-$100. If you are to ever go over-the-limit there's a penalty fee you must pay or the card will just get declined. Going over-the-limit will cost you more money and may even increase your interest rate.

Section Four: Smart Consumers: Don't Fall Into the Credit Card Trap

A credit card is not free money, it's borrowed money and you must be very careful to make sure no payments are late and that you never go over the limit. Borrowed money is perfectly fine, but owing more money than you expected can end you up having debt. It is always great to have your credit card signed in the back or atleast have written on the back "see id" so when they ask for your id both names from the cards match.