Credit Card
By Suad Cuturic & Oscar Rivera
The Basics Of Credit
- Credit is the borrowed money to obtain goods or service before payment, in trust that payment will be made in the future.
What are the Forms of Credit?There are three forms of credit. Installment credit is the credit that you use to borrow money and promise to repay in equal amounts over a specific period of time. Revolving credit is the credit that allows you to borrow a pre-established amount repeatedly as long as your account is in good standing. Open Credit is the credit that requires that all money borrowed must be repaid in full every month. | What costs are associated with credit?Late payment causes high interest rates along with decrease in credit score . Also less opportunities in employment and purchase goods and service on credit. | What determines if someone gets credit and how much do they get?There credit score will determine there credit worthiness. |
What are the Forms of Credit?
There are three forms of credit. Installment credit is the credit that you use to borrow money and promise to repay in equal amounts over a specific period of time. Revolving credit is the credit that allows you to borrow a pre-established amount repeatedly as long as your account is in good standing. Open Credit is the credit that requires that all money borrowed must be repaid in full every month.
What costs are associated with credit?
Late payment causes high interest rates along with decrease in credit score . Also less opportunities in employment and purchase goods and service on credit.
Vocabulary Watch
Be Aware
- Interest: rate charged or payed for using money.
- Credit Bureau: company that collects the credit rating from individuals
- Credit Report: Shows your credit score and worthiness
- Lender: Company of personal that lends you money.
What You Need To Know
- A credit card is a card that you can use to purchase goods with money being borrowed to pay in full at the end of the month.
- You can use credit cards almost anywhere
- The benefits of using credit cards are rewards and money back.
- The cost of using credit cards is paying interest on late payments.

Smart Consumers: Don't Fall Into the Credit Card Trap
- Set a budget with using a credit card
- Begin with small purchases
- Try your best to pay payments in full
- Avoid penalty fees
- Accumulate points and rewards
- Avoid using online
- Beware of credit fraud/theft