Credit Cards

By: Debra Stephan

What is credit? What are the forms of credit? What costs are associated with credit? What Determines if someone gets credit and how much they get?

Credit is something to make buying items easier. When you look into buying something like a car or house, the bank looks at your character, capacity, creditworthiness, and collateral. They also look at your credit score. You can use your credit card, but don't over draw otherwise you'll have to pay interest on the negative amount of money. You can check your credit report once a year for free on certain websites,


Credit Bureau: A company that collects information relating to the credit ratings of individuals and makes it available to credit card companies, financial institutions, etc

Lender: An organization or person that lends money

Personal Loans: a loan that establishes consumer credit that is granted for personal use

What is a credit card? Where can you use credit cards? What are the benefits and costs of using credit cards?

A credit card makes purchasing big items easy. Some companies put a Credit Limit on the card, deciding how much you can use, or you can choose to do it yourself. Different types of credit cards can use different Interest Rates. If you don't make your payment on time, you will have Penalty Fees. Annual Fees are fees that some credit cards have you pay in order to use them. When you over draw your account, you have whats called an Over-the-Limit Fee.

Tips on how to keep your identity safe

  • keep your information safe
  • sign your card
  • write "See ID" on the back
  • ALWAYS use a secure Browser
  • Be careful on WiFi
  • Pay more than the Minimum balance
  • DO NOT max out your card
  • ALWAYS keep track of what you charge