Credit Newsletter

Alex Ramos

What is credit?

Credit is a short term that you able to get money, but have to be able to pay back the money that they let you lend from the bank at the end of each month with the charge of interest.

What are the forms of credit?

There are two types of credit. There are credit cards that are a little plastic cards you swipe at a store that offer them in use. You have to remember that you are only borrowing money from these type of cards and have to pay a bill at the end of the month. Personal loans is receiving money for a high prized item. For example school, or a car. In order to take out a personal loan you need to have good credit because they have to make sure you are responsible. Not forgetting that you will have to pay back this money in the later future. These are two of the most common forms of credit that everyone is aware of today.

What costs are associated with credit?

The thing that is associated with credit is Interest that will charge you yearly for borrowing money so that will pay back. Therefore your credit score would be could because it show that you have been paying your bills on time. If you don't it will show on your Credit Report that you haven't payed your bills, so it would be harder for you to get a lender for you to be able to get loans and all that good stuff.

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

To get credit it determine Creditworthiness because you have to show the bank that you are a responsible adult to pay back money. Otherwise know as the 3(C's).

  • Character
  • Capacity
  • Capital
You want to make sure that you have good Credit Bureau because then it makes it easier to get loans.

What You Need to Know

What You Need to Know is that a credit card people value it as free money, but at the end of the month you have to pay back what you spend so you have to careful because you will get annual fees. Also you will revise Interest Rate yearly for being able to use a credit card. It's money that you can use if you don't have money on you. You can use a credit card pretty much anywhere now a days because technology has advanced over the years. The only places where you can't use them where it says that "no credit cards here". The benefits of using a credit card is that when you don't have money the card is your pretend money until you get your actual money. Also have to pay it back at the end of the month so you have to watch your Credit Limit. If you don't then you will get Over-the-limit fee paying more then you had to from the beginning. If you don't pay your bill you will get Penalty Fees charging more.

Don’t Fall Into the Credit Card Trap

The only way not to fall into a trap is to be safe. Only spend what you make. Don't try to make it seem like you have money to give away. Make a goal for what your only going to spend and that way you can still pay off what you owe. Only spend it on emergencies because it's better to have money and pay it off on the spot. Also, if you only have so much money, put the money down first and then pay the rest with your card. It's easier then you think just have to play it smart.