Everything You Need To Know About Credit
Basics Of Credit
Credit is the ability of barrow money now and pay latter in other words buy now pay later but be aware of the APR (Interest) you are getting because this may be very high and increase your loan a lot.
Forms Of Credit
There is two forms of credit. Credit Cards and Personal Loans. Both of them are supply by a financial institution also know as lenders when you get a personal loan . A bank for example.
Cost For Credit
APR (Interest) is the cost you need to pay in order to get credit. Your APR is determinate by your credit score and your creditworthiness.
What determines if someone gets credit and how much they get?
Your Credit Score determinate if you get a credit and how much you get. How you know your credit score? You can get a Credit Report which tell you your credit score you can one for free each year.
How my credit score is determinate?
There is this credit companies called Credit Bureau which collect all your credit information and make public to any credit company or financial institution that solicited to know your credit.
Credit Cards And What You Need To Know
Credit Cards are cards give by a financial institutions which you can use to build up credit. This credit cards have a credit limit determinate by the financial institution. The better credit score you have the higher the limit will be.
Where can I use credit cards?
You can use credit cards anywhere, but be aware some of them have penalty fees for example if you use in other country you will be charge for it.
Benefits and Cost of Credit
Like everything else there are benefits and cost in credit cards. Some benefits of having a credit card you don't need to carry cash and you can buy stuff even if you don't have money but you need to pay later for it. Another benefit is that some cards have rewards. For example the Thank You card from Citi gives you point which turn into money.
Some cost of credit cards are APR and Over-the-Limit this will make your payment if you are not aware about it.
Credit Card Companies
Credit Bureau: Institutions that record all your credit record
APR: Annual Percentage Rage aka Interest
Credit: The ability of get money now and pay later.