Credit Cards

How you should be smart with credit and not dumb.

What is credit?

Has a preset spending limit based on the user's credit history, and each month the user can pay all or part of the amount that is owed to the bank. There are many different forms of credit there is school loans, house loans, and travel credit. The cost that goes with credit is house loans, school loans, fees, and etc. A person can get credit if the bank sees that they pay the loans back on time and if they have a high credit rating by 850.


  • Credit- To believe that someone will do something and pay it back later

  • Credit Score- A number assigned to a person that indicates their capacity to repay loan

  • Credit Bureau- Company that gathers information on consumers financial history

  • Credit Report- A record of someones past credit

  • Creditworthiness- A measure of your ability and willingness to repay a loan

  • Interest (APR)- States percentage cost of credit on yearly basis

  • Lender- An organization or person that lends money

  • Credit Cards- To spend it now; pay it all back later by the due date

  • Personal Loans- a loan that establishes consumer credit that is granted for personal use; usually unsecured and based on the borrower's integrity and ability to pay


Vocab Highlight

  • Credit Report- A record of someones past credit


Credit Score- A number assigned to a person that indicates their capacity to repay loan

Credit Cards- To spend it now; pay it all back later by the due date

These three things are most important because you should know what the banks look for when you get a credit card

Credit Cards What You Need to Know

Credit card is a credit used by the bank it doesn't come from your bank account. Your able to use a credit card anywhere you want to. Some places don't allow you to use it because they don't want to pay each they swipe the card. The benefits of using a credit card is that your able to spend it when ever you want to and don't have to worry about having cash on you all the the time. You just have to make sure you pay it all back on time. Or your going to have to pay interest fees by 15%.

  • Annual Fees- A yearly fee charged by credit grantors for the privilege of using a credit card

  • Credit Limit- A limit on your card that you can't go over a certain amount

  • Interest Rate (APR)- States percentage cost of credit on yearly basis

  • Penalty Fees- Fees charged if you violate the terms of your cardholder agreement or other requirements related to your account
  • Over-the-limit fee- You have to pay more interest when you go over the amount on your card by at least 15%


Smart Consumers Don’t Fall Into the Credit Card Trap

  • If you want to stay out of debt spend it on things that you really need and you know you can't afford
  • Use credit cards on trips, school, house, and a car that you can't afford but use it on a used car
  • Pay the bill back on time and if you can't pay back all of it at once then at least pay back the minimum amount back
  • If close to being into debt spend time organizing where your money goes and put some aside to pay for bill
  • Try and use money out of your pocket and not use the card all the time so you don't have to pay back more