By: Jimmie Whaley


  • What is credit?

Credit is the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

  • What are the forms of credit?

There are many forms credit. Like student loans for college and credit cards. Any instance were you are borrowing money you don't with the condition of paying it back at a certain time is credit. The person or place that is the lender will give you an interest rate(APR)

  • What costs and benefits are associated with credit?

The costs could be great if you do not manage it correctly but if you don't you could end up in debt and you could potentially lose everything. If you use it correctly it is a great way to use money that you'll eventually have but use in the present.

  • What determines if someone gets credit and how much they get?

Your credit score. It is retrieved by a credit bureau and is given via credit report. This will determine your credit worthiness.

Things To Know About Credit Cards

  • What is a credit card?

A credit card is the tool that allows you to make purchases with credit issued from the place that give you credit.

  • Where can you use credit cards?

You can use credit card at places that accept them and for things such as student loans(not a good idea thought) and other stuff like bills.

  • What are the benefits and costs of using credit cards?

Depending on the interest rate, annual fee, limit, and over-the-limit fee it can be to costly if you don't handle it right. Of course there is also penalties fees but if you are responsible with the use of a credit card it is a great tool to use. Those that manage there money and income well could use a credit card as away to use money they'll get from a later paycheck.

Shopping For Credit

When looking for credit you should over look lots of credit cards and when you start to narrow it down compare them, and look for the following when comparing.

Name: LCU Visa Platinum

Annual Rate: No Annual Fee

APR: 9.8%-17.8%


- Balance Transfer is nothing

- Cash Advance is 8.88%

- Over-Credit-Fee is nothing

- Late Payment Fee is $25

- Return Check/Payment Fee is $25


- No annual fee

- A 25-day grace period on retail purchases

- Credit limits from $500 – $15,000

- Worldwide acceptance of VISA®

- Cash availability at VISA® and CIRRUS® ATM machines anywhere in the world

- Earn rewards points with ScoreCard.


Name: Student Visa Card

Annual Rate: No Annual Fee

APR: 18.15%


- Late Payment is $15 or current minimum amount, whichever is less

- Return Payment is up to $10

- Balance Transfer costs nothing

- Foreign Transaction is 1% of each US dollar

- Cash Advance is $10 or 3% of transaction, whichever is greater


- Credit limits up to $500 with a well-qualified parent or legal guardian co-signer

- Students with limited or no credit history are eligible

- 25-day grace period on purchases

- No cash advance fee if the cash advance is taken at any SAFE ATM, through CALL-24, or through SAFE's Online Banking

- Accepted at millions of locations worldwide

- Overdraft protection source for your SAFE checking account

- SAFEGUARD protects against unauthorized transactions


As you can see the cards are somewhat similar but each offer different things that the other doesn't. Depending on your need and values you would take the following info and choose a card, then again neither may be as good as you thought and then you would look for different cards.

Credit Traps And How To Avoid Them

There are services and creditors that wish to offer you deals and while they seem good and not harmful they are anything but. They try to get you to commit to something they know you won't be able to pay off in an effort to get you into debt so you become a constant source of income to them until you are all dried out. But there are ways to avoid getting caught in these traps.

  1. Always know where your money is going. You Should keep track of every cent, there is nothing wrong with being frugal.
  2. If you don't have the money don't use your card unless it is an emergency.
  3. Watch out for hidden fees.
  4. Don't pay for things such as cars, houses, or student loans with credit.
  5. Don't fall behind on credit cards, late fees can add up fast.