By: Azucena Lara

Section 1: The Basics of Credit

What is credit? Credit is the ability to obtain goods or services before payment, based on the trust that the payment will be made later in the future. Credit cards are what people get when they start paying or using 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.

Section 2

Penalty fees are made when something right did not happen or the person did not make the payment's on time. Annual fees are made each year all the time for the credit card.

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.

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Section 3: Credit Cards: What You Need to Know

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What you need to know about credit card is that they are good to use properly. If a person does not use them correctly they can be in debt and not have the opportunity to use a credit card. There are a lot of credit cards to choose from. There is not a number of cards you should have. You must understand the card's interest rates. The payments don't have to be paid in full.

Section 4: Smart Consumers: Don't Fall Into the Credit Card Trap

Something that people should keep in mind is that credit cards can turn into something bad if people keep buying things and not making the payments. It can be bad when the person is not using the appropriately, it can cause many problems. Making the payments on time needs to be made so you don't have any problem's with that, people should know that the payments are not supposed to be made on full they can be partial, which many people find it better to do.