Using Credit

Jack Zahner, Andrew Jones, Dominic Baker

Credit is the trust which allows one party to provide money to another party where that second party does not repay the first party right way.


Credit can be used when an unexpected expense arises and you have no other option during emergencies. If you have a credit card with a low interest rate, then you can use it to fund a large purchase that would require a loan.


Credit card companies charge interest rates on some cards that double their rate, and when you are borrowing money it isn't going to help your finances. While credit card companies make a lot of money on interest charges, they make just as much on fees. If you make a payment late, you will be charged a late fee. If you go over your card limit, you'll have another fee added to your bill. It's possible to pay more in fees than in interest.