Need help information on credit cards or credit?

The Basics of Credit!

  • Credit is known as a payment received
  • There are three different types of credit:
  1. Installment Credit which is a loan repaid with interest in equal periodic payments.
  2. Revolving Credit is automatically renewed as debts are paid off
  3. Open Credit receiving copies without having paid for their subscriptions

You don't need to worry about any hidden costs; the only thing you will come across is, annual fees. A yearly fee charged by credit grantors for the privilege of using a credit card.

A person's credit score is extremely important, as it determines his or her eligibility for all kinds of financial endeavors, such as credit cards and home loans.

A credit score may be anywhere from 300 to 850, with 300 being the most risky and 850 the most secure in the eyes of lenders.

The less credit a person uses out of the amount he has available, the better he will look to the credit bureau.

Depending on what credit card company you decide to go to the interest will always be different.

Vocabulary Watch!

Credit Cards: What You Need To Know!

A credit card is a small plastic card issued by a bank, allowing the holder to purchase goods or services on credit.

You can use a credit card about anywhere! But a great place to use your credit card is at sales. But you need to be very careful what you buy because it is extremely easy to buy more than you need and to be unable to repay your debt back.

Credit Limit is the maximum amount that you can borrow under a home equity plan.

Penalty Fees are the fees a credit card companies usually charges you. These can vary from going over your credit limit to paying your bill past it's due date.

For each month that their balance exceeds their loan limit, borrowers are charged this type of fee, which typically ranges from $29 to $39. A Over - the - limit - fee.

Smart Consumers: Don't Fall Into the Credit Card Trap!

In my personal opinion; credit cards should be used for people that know 100% that they can maintain a balance to set them self to, and purchasing reasonable items monthly. Also, are able to pay any fees on the due date.

Debt can be a dangerous thing to fall into, it could take forever to pay back all the money.

Hopefully this helped :)