By Herbie Blankenship
COMMONLY ASKED QUESTIONS
1) What is credit
a) A way of borrowing money and paying the person or place bank.
2) Are there different forms of credit
a) Yes, installment credit, Revolving, and open credit
3) Are there cost with credit
a) Only depending on your credit score higher the better
- Credit bureau - A government agency that alternates your credit score
- Credit report - A form that will show you your credit score
- Creditworthiness - How well your credit is
- Interest - The amount of extra money you need to pay
- Lender -The person giving you the loan/ credit score
- Credit Cards - Basically a loan that needs to be payed of at the end of each month
- Personal loans - Use of money at your discretion
- Credit score - A number that is used to help determine if you pay your bill on time. This will help loan agencies decide how much money to approve you for. Also a higher credit score may also help lower interest rates.
- Credit Cards - A card that can be used like cash but you need to pay the money back at the end of each month.
- Credit Bureau - A government agency that controls your credit score, They get the info to change your credit from different businesses that you pay monthly too.
2) Where can you use them - Any where that has the credit card machine
3) What are the benefits and cost - Instant money when needed. Easily go in to debt
- Annual fees - Ranges From $15-300
- Credit limit - The amount of money that is available to you
- APR - Annual Interest %
- Penalty Fees - If you pay you bill late over charge your account etc
- Over the limit fee - Over drafting your account
Smart consumers fall into the Credit Card TRAP
Debt can leave you helpless
Once you go into debt it's like a magic trick to get out
When you start to go into debt you should cut the credit card
Once your in the trap your in it for good