Basics of Credit

Herbert Vega

The Basics

Credit is payment received you need to record debits or credits made to your account. If you can not your credit. You can use Personal Loans available from the banks or other financial institutes to help individuals purchase personal items like a car, boat, etc. You use your credit by using a credit card. Installment credit is credit that you use to borrow and promise to repay in equal amounts. The next type is revolving credit allows you to borrow a pre-established amount repeatedly as long as your account is in good standing. You repay the established amount in full or make a partial payment that is subject to interest and/or fees. Open credit is credit that requires you to pay any amount of borrowed money in full every month. You can check your credit score by going online. Some fees that you have are discounted fee charges. You must show your creditworthiness-the reliability to pay back a loan. You must have character, capacity and capital.

What You Need to Know About Credit Cards

A credit card is a plastic card issued by a bank, business, etc., for the purchase of goods or services on credit. You can use credit cards where accepted. Credit allows consumers to purchase more goods. More goods = more people to make goods = more jobs. People w/jobs are able to spend more money. Use credit to purchase even more goods. The costs are all over in fees and stuff like it. There is a mandatory annual fee ranging from $15-$100. There is an interest rate between 0% to 19%. If you pay on time then you don't need to pay interest. There always is a credit limit. There is an over the limit fee. It is usually $30. Other fees include a late payment fee and penalty fees that can result in a higher interest rate.

Stay Away From Traps

Don't impulse buy what you want. You need to moderate what you are spending your credit money on. If you are in debt this is especially important. You can also take a list and don't spend any money on anything else that isn't on the list.