Credit Newsletter

Mayra Rivera pd.2

1.) What is Credit?

Credit is the financial trustworthiness. With credit you have the ability to make purchases when desired. You get credit scores based on the calculations based on information found on your credit report if you make minimum payment on time, how much debt you owe, can affect interest rate on loan.The Credit Bureau is the company that collects peoples credit ratings and makes them available to financial institutions and credit card companies. You can get a free credit report once a year. Credit Reports shows the amount of debt you have. If you ave high debt you may not be able to receive personal loans in which you establish consumer credit that is granted for personal use by lenders who are usually organizations. Creditworthiness is general qualification for personal loans or borrowing money. In order to be creditworthy you must have earned credit. Using a credit card is a great way to begin earning credit.

2.) Important Words

Credit- Receiving goods and services before making payments

Credit Cards- Cards that make it available for you to make purchases whenever you want without making payment there. You will have to pay later!

Credit Score- Calculation based on credit reports

3.)What you need to know about Credit Cards.

First of all begin by asking yourselves what exactly is a credit card? A credit card is a way to make big purchases when you want to buy, but will have to eventually pay for it. You use credit cards at any store where accepted. Credit cards may be have positive and negative benefits. A benefit may be that you earn credit. You want to earn credit so that you may be creditworthy of earning personal loans. You must pay annual fees each year. Not only must you pay annual fee, but you must also pay interest rates, penalty fees, and over-the-limit fees. Interest rate is the yearly cost or annual percentage rate. You pay Over-the-limit fees when you overpass your credit card limit. You have credit limits from your financial institutions. They provide you with a maximum amount of debit.

4.) Smart Consumers don’t fall into the Credit Card trap!

Here are a few tips to help you avoid getting into debt due to credit card usage.

  • If you know that you can't pay an item within 24 days, then don't buy it.
  • Be sure you signed your card, never share information.
  • Keep information safe.
  • Try to pay more than minimum balance.
  • Always pay on time.
  • Be really careful on public wireless connections.
  • Don’t max out with your card.
  • Only use credit for necessities.
  • Keep track of what you charge.