Credit Safety

The basics of credit and what it means in your life

The Basics of Credit

In order for one to live a safe and secure life, then young people must know about credit. Credit is the idea people can borrow money and have to pay back later. So if someone is low on money and needs money to pay for something, they can get it paid for by the bank. Some of the types of credit people use are loans and credit cards. Personal loans retain to borrowing money from the bank, while credit cards retain to using a card to pay for items to be paid later. But even though credit may sound too easy, there are sets of fees to use these services. The lender will be charged in interest to use credit. They will be able to use the credit, but will have to pay money to do so. Also in order to get credit, one much have certain services that determine if one can get credit. Banks determine one's creditworthiness, a way to analyze one's character and use of money in the bank. Having a good credit report and credit score will help as well. These determine one's history with credit, and their rating of how well they do with credit. Depending on what the credit burea says from these reports, one's credit future is known. If one applies to these principles, they will have a a safer and secure future in the world of finance.

Vocab Watch

Some other terms people should be careful involving credit are capital, collateral, and credit limit. Capital is the idea of how much one has invested in a business or bank. This could determine how many assets one has, and determine the character of a person and how trustworthy they are with their commodity. Collateral is commodity used in financial situations to leverage other things over. Like if someone wants money, they may have to leverage something in order for the bank to trust them with their money. And the last important term is credit limit. This is the idea banks can limit how much credit one can take out. This can be a high or low ammount, depending on the history of the person and how reckless they are with money. They may have a limit if these aspects apply.

Credit Cards: What You Need to Know

When using credit, most likely people will use a credit card. Its small, its easy, and is the best way to deal with credit. A credit card is a card given to people at a bank who need items without using money. They buy the item with the card, and then pay it later by the end of the month. Usually they can use these cards at stores, online, or anywhere that accepts them. Most big business like target or best buy deal use and accept credit cards. They can be very benificial for people who are low on money, need items for emergencies, or for general buying. Though credit cards are mostly useful, there are costs and annual fees that go along with it. Many banks charge 15-100 dollars to use credit cards, and at the same time charge a monthly interest rate. And depending on how reliable one is, they may have a credit limit on how much they can use their credit card. Fees like over the limit fees and even penalty fees may apply. Overall, if one uses credit cards, their life may be greatly impacted. But depending on how much they do with said card, their experience will be different

Smart Consumers: Don’t Fall Into the Credit Card Trap

And in this last section safe practices with credit cards will be discussed. Not all will be covered, but some of the important ones.


-Get a credit card with security features that should protect you. Get a photo id on the card so people won't be able to past off as you.


-Always save your credit card reciepts. Thus if any false transactions occur or your card is stolen, you can prove what you purchased and fix any issues.


-Never borrow your credit card to anyone and be careful where you leave your card. Who knows what they may do with it. Only trust yourself with the card's location.

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