Credit News
Basics of credit
What is credit?
CREDIT is what makes buying easier because you chose what to buy, and when to by it. But it is not free money.
What are the forms of credit and what costs are associated with credit?
Other forms of credit can be PERSONAL LOANS, which is borrowing money from a financial institution for personal use, or credit cards and car loans. CREDIT CARDS is a plastic card issued by a bank, for the purchase of goods or services on credit. The primary costs associated with credit cards is if you have to worry about credit score. A CREDIT SCORE is the numeric calculation found on your credit report between 300-800. The higher the number, the better. This can affect loans and INTEREST RATE (APR). Interest is the yearly cost for the money you borrowed. If you are late on payments your APR goes up. A CREDIT REPORT is detailed information on a person's credit history, including credit accounts, loans, and late payments.
What determines if someone gets credit and how much they get?
To answer this question, you must know the four C's. Character: are you trustworthy? Capacity: do you make enough money, or can you pay back? CREDIT WORTHINESS: what's your history? Collateral: what do you have to value in case money can't be colllected? The CREDIT BUREAU is an agency which collects and sells information about the creditworthiness of individuals. So all these C's are important for getting credit.
What you need to know about credit cards
What are the benefits and costs of using credit cards? You can establish good credit when using credit cards. You can also use them for emergencies or for when you don't want to carry heavy loads of cash.
Although they sound like a great deal, you also have to deal with ANNUAL FEES. Which are a yearly fee charged by credit companies for the privilege of using a credit card. There is a limit on how much you can borrow, called CREDIT LIMIT. Other disadvantages are PENALTY FEES. Which are fees if you don't pay your bill on time or go over your credit limit.
TIPS FOR GOOD CREDIT!!
- Use secure browser when using credit cards online.
- Pay more than the minimum balance.
- Don't max out your card!
-Keep track of what you charge.
-No late fees.