By Monica Martinez
The Basics of Credit
You can by now and pay for it later that is called credit. There are two forms of credit they are credit cards and loans that should be used when you are buying a home, a car or paying for your education. Of course credit is not free it comes with interest that's the fee charge from the bank company you applied to get the card. The Creditworthiness determines how much you get of credit also Credit Bureau determines if you get it or not it knows everything about you it goes through a processes then you get a credit report with your credit score a good score would be between 300-800.
Credit Cards: A card issued by a bank that is use for goods and services.
Personal Loans:Money that you borrow either to purchase a home,car, or your education.
Credit Score: Its basically your credit history. Its a number between 300-850 the higher the number the better.
About Credit Cards
Credit Cards can be good and bad depending on how it is use. A credit card is a card that is issued by a bank that is use for goods and services. You can use a credit card everywhere basically and I would prefer you use more when you are purchasing large things such as a car, a home, or pay for your college. There are benefits when using your credit card one is if you do not like carrying a large amount of cash with you then purchasing with a credit card is an easier buy. Credit cards are safer just in case you lost or gets stolen you can always report it, then just losing your money. You get discounts from stores and companies.There is a cost to this that's called your interest can be high or low that you have to pay each time you buy something also many credit cards come with a annual fee charge that gets paid each month.
Don't fall into Credit Debt!
- Keep track of all your purchases.
- Don't go over your credit limit.
- Pay off the balance of your credit card by the end of each month.
- Don't give out all your info about credit card unless its a secure company.