by Kris Ripke

Credit is the ability to borrow money in return for a future payment.


  • Credit - borrow money for future payment
  • Credit Score - 300 - 850 the higher the better
  • Credit Bureau - collet info on consumers credit and sell it.
  • Credit Report - report on what you've been buyinh
  • Creditworthiness- depends on your credit score
  • Interest (APR) - the insterest you pay annualy or monthly on credit.
  • Lender - lends out cash
  • Credit Cards - a card can charge fees too
  • Personal Loans - a loan for like a car etc...

Credit cards

A credit card is a piece of plastic that charges things under your name and account.

You can use credit cards where ever the accept them.

The costs are interest rates and the benefits are points you earn.

  • Annual Fees - fee you pay yearly for credit card
  • Credit Limit - amount you cant go over on card
  • Interest Rate (APR) - interest you pay can be higher or lower depending on your on time payments
  • Penalty Fees - interest increases for late payments
  • Over-the-limit fee - went over your spending limit

Tips for using credit card

To be safe with a credit card, you must not go over your limit, you must make all payments on time, don't buy fast food, only buy necessary items. Don't buy expensive unnecessary items. Be smart about what you buy and your payments.