Credit Newsletter

Maria De La Luz 7/8

What is credit?

Credit is when you borrow money also for personal loans from the bank for example, but you would have to pay them back every cent you borrowed from them then if you don't pay them back then they'll see you can't even pay from something and then it would affect your credit score.

What are the forms of credit?

The forms of credit start by when a person asks for a loan and they usually have to pay interest for it. Also when a person goes over the limit with their credit card and that's mostly how someone goes on debt, having you pay back more money. That's why you should have creditworthiness always have some money at the side like an account that will be your back up when you fall in credit issues like these so you can repay back what you borrowed.

What costs are associated with credit?

Any credit that you can get is not free because you will have to pay for it later on. As soon as you ask to borrow some places they charge you with an interest, so this basically means that if you borrow for example $500 and charge you with a 10% interest then that means you will have to pay $510 in order for her to borrow the $500.

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

The thing that determines if you get credit or not is credit bureau and they have a record of every adult, in result the lenders request this it mostly shows if you've been sewed, bankrupt or if you've missed any payment. For example if you want to buy a car and they see in your record that you couldn't pay other things or more serious things they will probably not even end up buying it because your credit wont be enough for the payment of the car and you wont be getting that car at the end. To earn credit you get a score between 300 and 850 but if you get a higher score it's much better for you because that only means your credit has grown and it would look better in your credit record. That's why you should always pay your payments on time, try to always have the money for those payments you need to pay and pay them on time, don't wait at the last minute. Then you wont have problems with your credit.

Vocabulary Watch

If you want to earn credit and in a easier way it's plain and simple PAY YOUR PAYMENTS! Paying every payment will simply look in your credit report and you'll get two things out of that a good credit report and a much better credit score.

What is a credit card?

A credit card is something you can use so then you can get credit for something you can use in the future.If you pay everything you wont be charged with interests but if you don't pay it on time you will get a high interest rate around 0%-29%. It usually says you have a credit limit but the more you buy and the more the bank sees you spend they higher the money you can borrow just so they get more money back from you.

Where can you use credit cards?

Basically you can use credit cards in any place but it's much better if you start small like don't waist too much, stay in something balanced. Just as long as you don't get the over-the-limit fee you'll be good to go.

What are the benefits and costs of using credit cards?

The benefits are that yes you may use the card as many times as you want but that doesn't mean that you wont get to pay the annual fee or your penalty fee. The annual fee is between $15-$100 and the penalty fee can cause an affect on the interest rate.

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

A reason why you don't want and shouldn't want to fall in the credit card trap is mostly because it can change your whole life. You can have everything you want but at the end you'll realize that everything you really needed went away just as soon as you decided to keep spending on that credit card. Something that many people go threw are debts, lots and lots of debts. They either can pay back what they wasted or they just live their life unhappy. You really don't want to always having to worry how much and who you have to pay back to so that's why many of the people should not have a credit card until they actually really need it. A way were you can save your self is by not going over the limit of the credit you have. Always try to stay between that limit or at least a little less than that limit because as soon as you pass it yes it can go higher but that would only mean you would have to repay much more.