By: Azucena Lara
Section 1: The Basics of Credit
What are the forms of credit?
-Installment credit is when you use money and promise to pay it back in a specific period of time.
-Revolving credit lets you borrow money repeatedly as long as your credit is good standing. this can be made in full or partial payments.
-Open credit all the money that was borrowed should be repaid in full every month.
What costs are associated with credit? The discount fee charged by the credit card, method use to enter the transaction, fraud can be a higher cost.
What determines if someone gets credit and how much they get? Depending how much they have use and if they have been making the payments the way they should be made and on time.
When people need money and they are sure they will pay it back they should go to a lender so the money can be borrow to them. Same with personal loans if the person ever needs a loan for a specific need or reason they can get one but they need to be sure they will pay it back , otherwise there will be a problem.