Credit Newsletter

Information and tips

Basics on Credit

What is a credit? Credit is is the ability of a customer to obtain goods or services before payment based on the trust that payment will be made in the future. You get a credit report and it is a record of an individuals or company's past borrowing and repaying and it includes information about late payments and bankruptcy.You should check your credit at least once a year you can check in one of these two websites. www.alerts.equifax.com and www.annualcreditreport.com


What are the forms of credit?loans,secured loans,unsecured loans,installment loan, and credit cards. Those four loans are personal loans. Personal Loans are loans that establishes consumer credit that is granted for personal use usually unsecured and based on the borrowers integrity and ability to pay.

What costs are associated with credit? The primary costs associated with credit cards are the discount fee charged by the credit card company and the up-front cost of purchasing the item. The fee varies, among other things, on the type of card accepted and the method used to enter the transaction.

What determines if someone gets credit and how much they get? A specific formula is used to determine your credit score. Credit score is determined is based on whether the person pays bills on time, how much debt he/she has, the length of his/her credit history,how many new accounts the person has, and the diversity of the credit accounts. A credit score may be from 300 to 850. 300 being the most risky and 850 the most secure in the eyes of lenders. Lenders are an organization or person that lends money. You need to be a person who can be trusted with a credit and that's called a creditworthiness. Creditworthiness is when you have an acceptable credit rating and being a responsible borrower and that's good for you because you have a great credit like that.

Vocabulary watch

Some important vocabulary you should know from a credit are:

Credit Score-determined if you can pay on time. if you don’t pay bills on time you get a bad credit score.

Credit Bureau-A company that collects information relating to the credit ratings of individuals and makes it available to credit card companies, financial institutions,etc.

Interest (APR)-the amount of money you pay on your interest.

Credit Cards: What You Need to Know

Credit cards are a small plastic card issued by a bank or business allowing a holder to purchase goods or services on credit based on their promise to pay them. The person who gives you a credit card creates a revolving account and allows a line of credit to the user. The balance of a credit card is required to be payed in full amount each month.Credit cards have and annual fee and it's a yearly fee,ranging from 15-300$ that's charged by the credit card company for the convenience of the credit card. If you don’t pay your credit card bill on time, or if you spend over your credit limit, generally your credit card company will hit you with a late fee or over limit fees. Those are called penalty fees.

Something good about a credit card is that the transaction is more secure than other forms of payment.

TIPS

Some useful tips for you to be safe when using credit cards are:

-don’t max out
-keep info safe especially from identity theft
-sign your card
-dont share info with anyone
-always use a secure browser
-pay more than your minimum balance
-only use credit for necessities
-make sure to keep track of what you charge
-pay on time

How to get a credit card

easy way to get it without getting denied