The Basics of Credit

By: Amanda Brown

The Basics of Credit.

What is Credit? There are a variety of different types of credit available to consumers to help meet their financial needs. These can range from a credit card for travel purposes or financing for automobile or other large purchases.

What are the forms of Credit?

Personal loans , someone who will lend you the money and expect you to pay back, Credit Cards,

What costs are associated with credit?

Credit Score, Credit Bureau uses this information to assign a credit score to indicate how creditworthy a person is. Credit Report shows how well someone credit was or if it wasn't.

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

Look for the APR (annual percentage rate). Will give you a good indication of true cost of the credit. The lower the APR, the better the deal.

What you need to know?

What is a credit card?

Grants a line of credit limit to the consumer to spend, but they must pay the annual fee.

Where can you use credit cards?

Once you sign up for one. But make sure you have a good interest rate.

What are the benefits and costs of using credit cards?

You will always have to pay back, but never be behind on paying back which will higher your APR. You will have a over-the-limit fee if you buy over the amount you were not to do, and penalty fees.

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

Ways to be safe while seeing credit cards. Always keep count of your money so you know who much you are able to spend and pay back. Always, Always pay back in time, it will look really bad f you can not pay back your fees. Do not waste your money on things you do not need, so when you really need to buy something that you need like groceries, you will have money.