Future Focus

Helping you make smart choices with your money

The basics of Credit

You are soon to be out of High School and on to the real world. You're thinking to yourself what am i going to do? I have no money. Credit companies all over the united states are here to help. Credit is the ability to borrow money in return for a promise of future payment. There are many types of credit including student loans, where they help you pay for your books and tuition. The Mortgage loan helps you pay for your home and your insurance to cover for natural damages. When applying for a credit you must show your creditworthiness,letting them know your reliability to pay back. They will judge that by using 3 factors;Character,Capacity,and Capital.The Credit Bureau has a record of every adult such as if they've been sued or missed a rent payment. That helps them determine your credit score,a number that reflects your creditworthiness. Credit is not free,there are some fees associated with credit. You must pay Interest (APR),this will depend on the type of credit you choose to use. Late fee is if you don't make your payment on time and Over-the-limit fee, when you go over the maximum amount available. In order to get credit they will look at your credit score and credit history. Depending on your credit score they will determine how much credit will be available to you.

Vocabulary Watch

Annual Percentage Rate (APR)- Interest on loans or credit. The amount of interest depends on the type of credit.

Credit History- record of an individual’s past borrowing and repaying

Credit Rating (Score)- an estimate of ability to fullfill financial commitments

Credit Cards: What you need to know

Everyone has heard about Credit Cards but we don't all know what they are or what they do. Credit Cards are issued by banks or companies for us to purchase goods on credit,with you promising to pay them back. They have Interest rates after a specific period of time. The interest they put makes us customers pay them back faster. Credit cards also have a credit limit,there's only a specific amount of money you can use. If you go over that amount there is a over-the-limit fee,where you have to pay more money for exceeding the credit card limit. You can use credit cards practically everywhere that's why they're beneficial to everyone. There are benefits to a credit card as well, you get to purchase goods by just swiping the credit card and not having to pay a penny...Well that is until you get your monthly bill. When having a credit card you don't need to worry about carrying cash around and loosing it. If your credit card gets lost or stolen you can report it immediately and no one can use it. With credit cards there are penalty fees, where they charge you extra money for not sending the payment on time or over credit limit. They have an annual fee that requires you to pay an amount of money ranging from $15-100.

Smart Consumers,use smart tips

  • Avoid too many cards, it's good to have one or two
  • Don't miss payments otherwise it will increase your balance
  • Avoid identity theft;never share your Social Security
  • Choose cards wisely:Lease expensive,greatest benefits
  • Don't use credit card when buying fast food, I'ts more expensive!

Credit Consultants 1000 Wolf Road Northlake, IL 60164

Bobby Burger

320 Grownup Lane

Melrose Park, IL 60164