The importance of building credit

By Breanna Garcia

The Basics of Credit

First thing you need to know what's credit. Credit is borrowed money and it also charges interest . Interest come when after the purchase is made and borrowing limit. The forms of credit are loans that let you borrow money like for a car , paying for college , or buying house . The benefit of having credit is Building a Credit Line , Emergencies , Purchase Power and Ease of Purchase . The costs are Blowing Your Budget, High Interest Rates and Increased Debt ,and Credit Card Fraud. When choosing a credit card you need to consider the six thing limit, the interest rate ,balance computation method , spending habits, and incentives.

Credit Cards: What You Need to Know

  • Now they are many different kinds of credit cards , but you just have the right one for you. What is a credit card , a credit card is plastic card that lets you borrow money for the bank. I don't matter if you buying something big or small you still have to pay back within the grace period like to 25-30 days. If you don't pay back within those days then you have to pay interest is a percentage you owe the bank. You can use a credit anywhere like if you don't have cash on you to paid grocery or if you want to go on a trip to California. The pros of having a credit card are you can make a large purchase now and pay it off in smaller chunks , you can build up your credit score, which will be useful later on , and also if you don't have cash on you . The cons are you made yourself a debt if your not careful of spending and even if its a small debt its actually a big one.

Shopping for Credit



The two credit card I compare are MasterCard and American Express . The annual rate of the MasterCard fee is 0% for 12 months and the regular APR is 15.42% , 19.24% , or 23.24%. For the American Express are 0% for the first 12 months then its 13.24% and 23.24% . The fee for American Express is $0 Intro Annual Fee for the first year of Card Membership, then $195.

Smart Consumers: Don’t Fall Into the Credit Card Trap

The advice I would give to someone for is using a credit card is to be careful. I would give this advice because if spend too much and you will be in debt . Then you pay a lot of interest. Sometime there are frauds that might steal your information and use your credit card.