Credit Cards: The breakdown
Section 1: The Basics of Credit
Usually credit is received when using a Credit Card. A card given to you by a bank/lender to use for purchases that you may or may not be able to pay for at the time. When you spend more than you have, you owe money. This can affect your Credit Score.
A credit score is what companies and personal loan places look at when you're trying to buy a home or loan. You can look at your credit score on the credit report at your request. Your score will also be acquired by a Credit Bureau, a company that let's credit card companies know your score. By having Creditworthiness, ie good credit, you can get good deals on even your bank account. Which can get more interest on your money. Money for your money.
Section 3: Credit Cards; What you need to know
A credit card is a thin plastic card given to you by a lender/bank. You can use it to buy things that you may not have the money for. Places like Walmart, Tonys, and any real place with a card reader is where they can be used. The convenience and typical use when you don't have the money at the time make it very useful. Even interest, money gained from having your money in the bank. But there are fees, things you have to pay, to use it. Annual fees like monthly amounts just to have it active. As well as things like a credit limit on how much you can overspend that goes with the over-the-limit fee. This will lead to a penalty fee to pay for the over charge.
Section 4: Smart Consumers; don't fall into the credit card trap
Check often that things weren't charged wrong or overlooked. This can lead to issues and they might even freeze your card.
Make payments on time. This affects your credit score which can affect your life.