Victor Fuentes News
Credit and Credit Cards
Credit is a ability to obtain goods or services before payment, based on the trust that payments will be made in the future. So for example if you want to take out a house and you don't have the full cash to pay it off, you can use your credit score and if it's good then you can finance it and pay payments every month on it. You have different types of forms that credit comes up in, when taking out personal loans the lender checks your credit report and they see how good you are on making payments. Then they decide from there how much they can let you borrow. Creditworthiness is a big thing that lenders look at because they want to know that they can trust you with their money. Another way that credit comes up in is in credit cards. Credit cards is a huge way that people build their credit and can destroy it. People think that is easy to just go spend money on the credit card and you can pay for it later, it is that easy but then you have to look at the interest(APR) that the credit card gives you. You don't want to pay more for the item then what it is really worth.
Credit Report: Credit history or credit report is, in many countries, a record of an individual's or company's past borrowing and repaying
Creditworthiness: trustworthiness with money as based on a person's credit history; a general qualification for borrowing.
Credit Score: is a number representing the creditworthiness of a person, the likelihood that person will pay his or her debts.
Credit Cards: What you need to know?
Credit cards is money that banks or other lenders give you in that card. Is money that you can borrow and later pay off. You can buy things that you don't have the money to pay full amount for it and could just pay payments for it. When taking out a credit card a lender only gives you a certain credit limit, which is how much they can only let you borrow. When you go past that limit sometimes the lender will charge you a over-the-limit fee. You can use these credit cards any place, food store, clothes store, pay for gas, and for anything basically. Once you buy a product and you don't pay the full amount on it after a certain days depending on the credit card lender then they start charging interest, and the interest rate and sometimes high or low depending. Credit Cards some don't have any annual fee for having the card, but that doesn't mean you get away from any penalty fees, for example like paying for something that you don't have the limit for it, or you don't make a payment. Credit Cards are good because it makes you start your credit, and helps you buy things that you don't have the full cash to buy it when in a big situation. But it can also ruin your life because if you don't know how to use it then you can ruin your credit score and your life.
Tips on using credit cards
When using a credit card you should think about the interest and how much the item is really going to cost. If you pay for a mac book that's $1,400, interest is going to be high and will add on another $300-600. Which means the item will cost more than what it really cost. You have to think about if you really need it, and as well as if you can afford the interest. If you have the full money for it, pay it it's the best way so you won't be in debt. Don't fall into what they say about no interest for 6 months or dumb things like that because after those 6 months the interest rate will be higher then what it really normally was.