Credit and Loans

Learn how to stay out of debt and managing your credit.

Basics of Credit

Credit is the ability to borrow money in return for a promise future payment in other words "buy now, pay later." Some cost associated with credit are payed interest and APR which is annual percentage rate


There are three forms of credit:

  • Credit cards
  • Loans

Each form has a different meaning, and the way you determine if one is eligible for credit is by checking a credit score, You can contact your credit bureau for your credit score, starting your credit is easy just apply for credit cards.


Also you FICO score determines how much credit you get. You can have personal loans once you get some credit. Depending on your score your lender will give you an estimated amount for you to use.

Vocabulary Watch

The 3 C's of credit!

  1. Character- Sense of financial personality, and dependability ( long term residence, steady job)
  2. Capacity- Financial ability to repay loan, high enough income and major expenses and debt.
  3. Capital- Value of what you own, saving investments, property. usage of capital to pay off loan if needed.

Credit Cards: What You Need to Know.

A credit card is a plastic card that your bank or business gives to you to pay for goods in credit. It has its benefits which is getting imaginary money you don't have to buy the things you need/want. You have to pay the annual fee depending on what type of card you get this fee may vary. Your bank gives you a credit limit based on your interest rate, if you go over the limit fee your bank will charge you penalty fee or they might allow you to purchase your items and you will go negative in your amount or the bank will decline your card.

Smart Costumers Don't Fall Into Credit Card Traps

Be Smart

When and If you ever decide to apply for credit cards make sure to ask lots of questions. As how much interest they charge monthly on your annual fee's, dont get pulled into scams and be smart about loans and how you spend the money on your credit card. Always remember at some point in time you will have to repay all the money you used when you had that credit card.