a helpful guide by: Janine Flanagan

The basics of Credit

You may be asking yourself, “What is credit?”. Well, credit is basically buy now pay later. And you can do this with a credit card. Now, there are different forms of credit, you could need to pay off your student loans, and there’s also just having a credit card. With credit comes costs, costs that come from credit cards are there because you payed for something with fake money, so until you pay it off, it’ll cost you.

^^Words to know ^^

Credit: Buy now pay later

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

Credit Report: A report detailing a person's financial history.

Creditworthiness: If you are responsible enough to have a credit card.

Lender: An organization or person that loans money.

Personal Loans: an unsecured loan, so the borrower doesn't put up any collateral or security to guarantee the repayment of the loan.

Vocabulary Watch

Credit Cards: What you Need to Know

A credit card isn't a shiny toy, it is a big responsibility. With this card you can buy things with the credit card companies money, but if you don't pay it off at the end of the month, then you gain interest. Meaning: you'll have to pay more money if you're late. Some credit cards have limits and others have Annual Fee's which are put in place so that the company can make more money.

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

Now, I know this all may seem scary, but credit cards can be great things and you can use them for many things. But, in the words of Uncle Ben Parker, with great power comes great responsibility. So, old use your credit card when you need to, and make sure you can pay off what you're buying.