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 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.
your Annual Percentage Rate, or APR is extra money you pay for because you didn't pay on time.
A card that is "fake money". You can buy stuff with this card, but you have to pay it back or you'll earn interest.
a number that tells you how good you are at managing debt