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Basics of credit

What you need to know about credit cards

What is a credit card and where can you use one? A CREDIT CARD is a plastic card issued by a bank for the purchase of goods or services on credit. You can use it mostly anywhere, wherever they accept credit cards. For example grocery store and they are highly used when buying a house or car. There are many types of credit cards one can buy. Low limit, which give you a limit on how much you can spend. Pre-pay, which secure. You pay before you buy. And also, student credit card, which have lower interest and can be signed up for at some schools.

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.


-Sign your credit card as soon as you get it so others cant use it. Don't share your information.
- 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.