Credit

The basics of credit.

What is Credit? The ability to borrow money for a promise of future payment.

What are the forms of Credit? Installment credit, Revolving credit, and Open credit.

What costs are associated with Credit? $15-$100 and 0% to 29% interest.

What determines if someone gets credit and how much they got? Your reliability to pay back a loan and the capacity of your credit card.

Credit Cards.

What is Credit Card? You can hold Credit on there and buy things with it, but you get a certain Credit limit which limits your spending. Also you get interest rate.

Where can you use Credit Cards? Pretty much anywhere where they accept credit, and online, once you buy stuff with it you get annual fees which you have to pay. If you fail to pay it you get a penalty fee.

What are the benefits and costs of using a Credit card? Benefits you can use it almost anywhere, but if you go over your limit spending you get a over-limit fee which you have to pay.

Ways to stay safe with Credit? Dont over spend, use it only for emergencies or if you know you can pay it back later. Also, keep tracking of what you buy just in case.