Credit Newsletter
There are different types and different ways to have credit
Basics of Credit
Credit
is the ability to obtain goods or services before payment, based on the trust that payment will be made in the future
Loans
A sum of money that is borrowed and expected to be paid back with interest.
Credit Cards
A plastic card given to you by a bank, business, etc., for the purchase of goods or services on credit.
What costs are associated with credit?
Not everyone gets accepted to have credit you have to have creditworthiness or be know to be responsible by the credit bureau for a company or bank to barrow you money. You either get the money you barrow on a credit card but for loans it's in different forms.When a lender like a bank or a business barrows you money you have to pay it back on time and that will bring your credit score up so that the next time you barrow money you have more. With the money that they barrow you they charge you a % in interest (ARP) so that they can make money off of you. Once a year or so you can ask for a credit report or you can ask for it with a fee. This is a report of what you have used the borrowed money for and who you barrowed money from. Personal Loans are loans given to you to buy big things like a house, car or to pay for school this is also called credit.
Know the vocabulary
Credit Report: even if you haven't done anything that could have changed your credit score you should check it once a year because someone can be using your name and steeling your identity.
Annual Fee: you have to pay no matter what it is not a penalty or anything its just what you pay to have your credit.
Credit Cards: What you need to know.
Don't Fall Into the Credit Card Trap
Smart Credit: House,Car,School
Dumb Credit: Fast food, things that make you feel better, Little things (they add up)