Credit Notes

By: Jimmy Wade Period: 7/8

What is credit?

Credit allows you to be able to make purchase with money you don't have at the moment. This must be payed back the money and if it is late, you must pay back interest.This is known as APR or Annual Percentage Rate. It's getting things now and paying for them later.

What is your credit worth?

Your credit is determined on 3 C's. Capital, Capacity, and Character. These three things can make you credit look good or bad, depending on your financial reliability. This information is comes from the Loan Applications and the Credit Bureau. The

Credit Bureau keeps a record of any bounced checks, if you have been sued, bankruptcy and so on. These things can hurt you in the long run and destroy your credit score.

Credit Cards

These little plastic beauties allow you to pay for things that you may not have the proper amount to pay for now. The way you use it, effects your credit score. This can be a good or bad thing.

What is a Credit Score?

A credit score is between 300-850; it is also known as your FICO score. The higher your credit score, the better it is. Ways you can Increase the score it to be able to make payments on time, have limited credit cards, and low debt.

Credit cards and keeping a good score

To obtain a good credit you must use a credit card. Once yo have one you can use it to make purchases on it. Ways to use credit cards to build your credit are..

  • Paying back Debt
  • Paying bills on time
  • Keeping as little credit cards as possible