Credit Newsletter

12/11/12

Basics of Credit

Credit is the ability to barrow money from lender in return for a promise of future payment. Forms of credit come from personal loans and credit cards. costs that are associated with credit are interest such as ARP or annual percent rate. In order to get credit you must demonstrate creditworthiness, your reliability to pay back a loan. Credit bureau collects information on consumers credit and sells it while credit score is the rating between 300 to 850, the higher the better. this sums it up with a credit report, determining weather you have good credit or bad credit.

Vocabulary Watch:

Credit cards: what you need to know

A credit card is a plastic card issued by the bank or some other type of business for the purchase of goods or services on credit. whenever that card is swiped an annul percentage rate is added to that balance. credit cards are to be utilized wherever you desire you just have to be careful with responsibility. The benefits of credit cards is that you can build your way up up building up you credit limit and have more opportunities of getting more. The negative side of credit cards are the fees. when it comes to credit cards you have to be careful with dates and not build up fees because besides having to pay you annual fees for just using the credit card you may also have to pay over-the-time-fee plus a penalty fee for violating the rules.

Smart Consumers: Don't fall into the credit card trap

while using credit cards you have to be careful because it can either make your life much easier or destroy you completely. If your a smart consumer you will be responsible for you actions such as paying bills on time, staying well within your credit limits, and being careful not to take too much debt.
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