Credit!

There keeping score

-The Need To Know On Credit- ( 1 )

Having credit or a credit score is an important thing in today's day and age, your credit score is basically a number that tells a lender when they borrow you money or sell you something with a big dollar value that you are reliable when it comes to paying them back or paying off your debt. Most of the time these loans that you take out have an interest rate which in the end makes whatever amount you borrowed a larger amount to pay back but if you pay it on time and don't miss any payments your credit score goes up. Credit cards can be a dangerous thing in the sense that if you don't pay it back on time your credit gets worse and worse to the point where you could be blacklisted and no one will sell you any big cost items or loan you money.

-The Important Stuff- ( 2 )

You credit score is important, it tells lenders who are thinking of loaning you a large sum of money if you are reliable enough to pay it back. If your credit scores good they will be more then happy too. If its bad on the other hand they are more likely to send you away, no one wants to lose money. When it comes to credit a lender has to be the 2nd maybe even 1st most important thing. The lender is the one who actually gives you the credit based off how good of a job they think you did with paying on time. Finally you wanna worry about the interest rate, you may be thinking to yourself oh yea i'll be able to pay off 10,000 in the next six months easy. Well when they go ahead and tack on an extra 5% on the loan it'll be a different story. Its always important to make sure you get a good interest rate and that you can pay that rate.


-The All Mighty Credit Card!- ( 3 )

A credit card is a little plastic card that is set up to an account, this account has a money on it but you have a limit. Your bank will give you a rate, this rate is how much it will cost you to have this account and have access to a certain amount of money. If you were to go over this amount they would also charge you an interest rate. Now this money is not free you have to pay the rate to use the money along with paying back the amount you spent nothings free in life.


-Tips And Tricks- ( 4 )

The biggest tip you could ever have about a credit card is to not spend more than you can reasonably pay back. The debt starts to add up and the interest rates on the money you borrowed will put you in the whole and keep you there. Stuck in debt for the rest of your life till you have to file for bankruptcy. This is not meant to scare you but its a heads up on watching what you spend.