Credit Newsletter

Fiorela Taushani

Credit

  • It is an agreement in which a borrower receives a value of money now , and agrees to repay the lender at some date in the future .
  • There are different types of credit like : student loans , credit cards , secured credit .
  • The costs that are associated with credit are the discount fee charged by the credit card . If you skip a payment , you will end up paying more and that will affect your credit history .
  • No body can get as much credit as they want . Actually it is determined due to the age you have , your capital , your job , and your incomes .

Vocabulary Watch

  • Credit Bureau (It's a company that keeps tracks of you as a borrower , and like this you have your own history )
  • Credit Limit (It's the limit that the money giver will put you as a borrower depending your status , job , capital )
  • 3 C's of the credit (Character , capacity , capital ; these determines the credit limit )
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Credit Card

  • What is a credit card? - It's a small plastic card issued by a bank or business , and it allows the holder to puchase goods on credit .

  • Where can you use credit cards? - When shopping , when buying a car or a house , basically we can use them almost anywhere .

  • What are the benefits and costs of using credit cards?-The benefits are that the students can take loans and pay them back with a good interest . The better our history , the more benefits we have . Credit cards are good to use while we have any emergency . The costs are that if we miss a payment we get in debt and it affects our credit history . Some other costs are the over the limit fees , and penalty fees .

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

-Establish a budget and then follow that budget exactly.

-Don't use your credit card on an unsecured website.

-Check your monthly statement.

-Carry as few credit cards as possible