By : Nicholas Fiorentino
Questions to answer
- The ability to obtain good credit or services before payment, based on the trust that payment will be made in the future this will judge your credit score.
- There are different types of credit, Personal Loan, Credit Card, Mortgages, Car Loan.
- Before you are given credit cards or your loan, the lender will be depended on your credit worthiness.
- Your credit report determines the amount of interest you are given.
- The credit bureau works to make sure credit cards are being used properly.
Section 2 Vocab Watch
A credit score is very important to keep in good condition. We depend on credit for so many important things in life, whether it's for buying a car, house or computer or getting a student loan. A three-digit number your credit score -- can determine whether you can do these things and even how much it will cost you.
A loan is money given to you by a bank that you can use to buy car or house or etc. Loans need to be paid off and you are given interest on them.
Credit Card Basics
Common cards are VISA, MasterCard, Discover, AMEX. Credit cards are used to get items instantly and get annual fees later. If you miss payments you will be charged penalty fees, you can also get charged interest rate, and if you go over your limit you get an over-the-limit-fee. This is how credit card companies make their money. You can use credit cards at most stores that accept them or online. Credit cards can be good and bad. If you miss payments your credit score will go down and your credit card limit will be lowered. If you make payments each and every time your credit score will increase and be very good.
Staying Safe While Using Credit Cards
Credit cards are a very good thing to have, but you need to be smart and safe with them. Credit cards can be stolen and used by thief's. You need to keep your credit card safe at all times. When using your credit card, you want to make sure the person taking it can be trusted. When you use your credit card, make sure you can afford the bill you will be charged with. You never want to miss a payment. This will ruin your credit score and your possibilities for loans or even a job.