The Basics of Credit

jose vilchis

What is credit?

are credit is lostes of thing it like money bur on one plays

What are the forms of credit?

Credit is a powerful tool that comes in several forms. It allows you to buy now with the promise of paying later

What costs are associated with credit?

The primary costs associated with credit cards are the discount fee charged by the credit card processing company and the up-front cost of purchasing the equipment.

What determines if someone gets credit and how much they get?

A specific formula is used to determine the score, and it's based on whether the person pays bills on time and a credit score may be anywhere from 300 to 850, with 300 being the most risky and 850 the most secure in the eyes of lenders. Therefore, a higher number will qualify an applicant for a better loan rate.

What is a credit card?

A credit card allows you to borrow money from your bank to make your purchases, whether you’re buying a burger or a round-trip ticket to France. As long as you pay back the money you borrowed within the “grace period” of 25-30 days, you don’t have to pay anything extra. If you don’t pay it back in that time period, you’ll have to pay interest

Where can you use credit cards?

you can use credit cards in any place but it's much better if you start small like don't waist too much, stay in something balanced. Just as long as you don't get the over-the-limit fee you'll be good to go.

What are the benefits and costs of using credit cards?

some benefits are Rewards, Cash Back, Building Credit, Float, Tracking Expenses and more. The annual fee is between $15-$100 and the penalty fee can cause an affect on the interest rate.