Credit Newsletter

By: Mickaela Nunziato

Section One: The basics of a credit

Credit is a promise of future payments in exchange for money, good, and services. A form of credit is a loan and credits cards. It includes schools, cars, and housing. The associated cost for a credit is to pay interest. A credit score is based on the credit report and typically goes to the credit bureau. In order to get a credit score you need to check the creditworthiness of that person.

Section Two: Vocabulary Watch

Capacity: The maximum level of output of goods and/or services that a given system can potentially produce over a set period of time.

Credit: A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some date in the future

Character: a conventionalized graphic device placed on an object as an indication of ownership, origin, or relationship

Section Three: What you need to know

A credit card is a payment issued to a user as a system of a payment. A credit cost is to pay an annual fee which is around 15-100$. You also have to pay a interest rate which is between 0%-29%. Everyone thinks a credit has a limit but it does. The credit limit is what you don't pay. You will receive a penalty fee if you do not pay your credit card bill in time.

Section Four: Don't fall into credit trap

1.Before you leave home, talk with your parents.

2.Don't get a card for the promotional prizes.

3.Shop around.

4.Know the rules of your card.

5.Have your own rules for using the card.

6.Protect your credit rating.

7.Read the credit card statement as soon as it comes.

8.Use a card, pay the balance

.9.Forgo cash advances.

10.Know that card companies exchange information.

11.Don't just make minimum payments.

12.Be prepared to stand up for yourself once in a while.

13.Look out for those warning signals of too much debt.