Smart Credit Newsletter

by: yaretsi valdivia


What is Credit?

Credit is no free money it makes big purchases possible.

What are the forms of Credit?

Character, Capacity, Credit worthiness, Collateral

What costs are associated with credit?

The primary costs associated with credit cards are the discount fee charged by the credit card processing company and the up-front cost of purchasing the equipment.

What determines if someone gets credit and how much they get?

The Four C's are the ones that determine is someone gets credit and how much they get depending on their history.

Credit Report- Only one credit report is given free per year.

Credit Score- Numeric calculation based on your credit report.

How are you allowed to get a Credit

Capacity- Is referring if you are able to pay back a loan.

Collateral- Meaning what do you have for value in case if you cannot pay back the loan what can the bank take away from you that could cover the loan you borrowed.

Character- Is letting the bank find out if your trustworthy meaning if they can trust you to pay back the money you are borrowing.


What is a credit card?

A plastic card issued by a bank, business, for the purchase of goods or services on credit

When can you use credit cards?

Credit cards can be used when you can't afford a purchase you want to buy.

What are the benefits and costs of using credit cards?

Benefits of using a credit card is being able to purchase an item that you have been wanting to purchase without having to run to the bank for cash.

Annual Fees- A yearly fee charged by credit grantors for the privilege of using a credit card.

Credit Limit- The total amount of money you are allowed to borrow.

Interest Rate- yearly costs for the money you borrowed. If payment is late your APR will increase.

Penalty Fees- There are penalty fees if payment is made late, for an annual fee, and if you go over the limit that you set yourself.

Smart Consumers

How to be a good and smart consumer?

To be one of these all you simply have to do it follow these tips when using a credit card be sure to only use it of the following.

  • Buy things you can afford to pay back
  • Try going for a prepaid credit card or if your a student for a student credit card
  • Know what you are signing
  • Read the fine print
  • Sign card right away once you get it
  • Don't share information
  • Use secure browsers
  • Pay more of the minimum balance if possible
  • Don't max out
  • Only use for necessary things
  • Keep track of what you charge