Learn everything there is to know about credit!
- Collateral is something pledged as security for repayment of a loan, to be forfeited in the event of default.
- Character is the type of person you are. They look to see if you are reliable and are able to pay back the money you will owe. They also check if you have enough income to receive a credit card.
- Credit Limit is the max amount of credit that a financial institution or lender will extend to for a particular line of credit.
Credit Cards: What you need to know
You can establish credit by getting store credit cards. Establishing credit now will allow you to use credit easily in the future. There is an annual fee that you have to pay and you also have to pay interest. There are fees for paying late and going over the limit. You have to control your expenses because it can result into a bad credit score and a lot of debt.