Credit and You

Do's and Don'ts of credit

What is credit?

Credit is getting an object before you pay, with the assurance that you will pay. Credit can be good, or bad. Credit is what pays for college until you can, and can also cause people to go bankrupt. Credit is dangerous because if you use it too heavily you can hurt your score and be too deep in money. You need to watch your credit because your credit score depends on it. Having a good credit score helps you get loans for items. The credit bureau evaluates your creditworthiness based on information given and your history with credit. You can check your score when you get your credit report each year. Each year you get an APR, or Interest rate you must pay. This rate could rise if you have a low credit score, because the lenders could be afraid to give you any money. By abusing your credit card you can lose that good score. A personal loan are small loans that can be greatly affected because of a low or high credit score.

Types of credit?

  • Loans
  • Credit Cards

What you need to know about credit cards

A credit card is the plastic card issued by the government to allow you to pay with credit. In order to use your card, you have to pay an annual fee. If you use the card and don't pay everything back in time, there is a set penalty fee added to your account. If you spend too much, there is an Over-the-limit fee. You obtain this fee by going over the credit limit your card's company gives you. Your APR changes by using the amount of credit you use pay back, or fail to pay back.

Do's and Don'ts of credit


  • Use it on large payments (Houses, Appliances, etc.)
  • Use when absolutely needed
  • Read fine print when signing for one
  • Keep number of card and bank together if card is stolen
  • Review statement for unauthorized charges


  • Pay late
  • Have too many
  • Use on things you can't afford
  • give out credit card number