Credit Letter

By: Kevin Holmes

Credit

What is a credit? In order for a lender to see if you're Creditworthiness or personal loans the bank or the seller must check your records. If you fail to pay off your bill in full the next time it will have the amount from last time plus interest(APR)Credit is points you earn when you buy something with your credit card. Credit cards are easier and faster to use the money and at the end of the month you earn a credit score.


What is the forms or credit? Installment, revolving, open credit


What determines if someone gets credit and how much they get? The Credit Bureau decides how much you can earn credit based on your credit report.





Important Vocab

Credit History: The history on the payments you have made if they were on time or not.


Character: To see what kind of person you are. If you are trustworthy.


Credit Rating: Your credit score the higher the number the better credit you have.

What is a credit card? A credit card is faster and easier then money. However they have Annual fees that are due when you pay your bill. If you use more then what you have you wil pay a over-the-limit-fee or if you don't pay your bill in full the left over from the last bill will transfer over and you will pay penalty fees. The Interest Rate (APR) will be a lot lower if you pay your bill in full on time.


Where can you use credit cards? You can use a credit card pretty much anywhere although they do have credit limits.


What are the benefits and costs of using credit cards?You will be able to earn more credit with the employers trust. Which makes it easier for you to get personal loans when you don't have the cash on you.


Tips

*Pay Bill on time


*Don't spend more then you can pay off


*Your credit history can help you a lot or can haunt you for the rest of your life