The Truth About Credit

By: Brooke & Ashley

What is Credit?

Credit is the ability to borrow money in return of a future payment.

SPEND NOW - PAY LATER.

The Good

Having credit gives you the ability to buy things now and pay them off later. Carrying a credit card allows you to keep much less cash on you. When you manage your credit card well, it establishes good credit. When you have good credit, you are in a good position to get a loan.
Big image

The Bad

The bad thing about carrying a credit card is that it is easy to get carried away swiping your card. It makes it very easy to spend more than you can afford. If you carry a balance from one month to the next, you will pay high interest rates on that amount. Never spend more on a credit card than you can afford to pay at the end of each month
Big image