Rubi Nevarez

What is credit

● What is credit? The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made to the lender. Also known as CreditWorthiness

● What are the forms of credit? School loans, Car loans, House loans, Credit Cards Personal Loans

● What costs are associated with credit? your are charged with interest if you do not make the full payment when your bill comes resulting in credit score to suffer.

● What determines if someone gets credit and how much they get? When you Credit report is given by the credit bureau your payment history is included and if you have good credit you are eligible for a credit card or a personal loan. The better your history is the more your limit is.

What you need to know about credit cards

Credit cards are plastic card given to a person who then is allowed to purchase items and be billed later. When the bill comes and all your purchase totals are added up you have the option of paying the entire payment in full or paying the minimum. If you pay the minimum of the bill you are then going to have the same charge for the next month plus interest charges for not paying the entire payment. If you pay your payments each month on time and in full you begin to build your credit score. This will allow you in the future to buy a home or a car and get your limit raised on your credit cards. You can use your credit basically anywhere if it is associated with the bank. There are some credit cards that issued by store that you can only use at that store, but most cards allow you to use it anywhere where a credit card is accepted.

Don’t Fall Into the Credit Card Trap

When using a credit card it is important to use it responsibly.

A way to stay free of bad credit and credit debts is by not purchasing something that you will not be able to afford to pay when your bill comes around. You could purchase something on your credit card and put the money you have aside and have it ready to pay when you bill comes. That way you can pay your payment in full to build your credit raise your limit on your card and stay out of debt. BE CAREFULL WHEN APPLYING FOR CREDIT CARDS KNOW ALL ITS INFORMATION ESPECIALLY THE APR.