Credit! Credit! Credit!
Read All About It!
What is Credit?
Credit is an agreement in which a borrower receives something of value now and agrees to repay the lender at some later date. When a consumer purchases something using a credit card, they are buying on credit (receiving the item at that time, and paying back the credit card company month by month). That's how it works. Receive now, pay later. Credit Cards are the most known form of credit. How they work is they offer you a line of credit that can be used to make purchases, balance transfers and/or cash advances and requiring that you pay back the loan amount in the future. They way you can build good credit is by paying those bills on time and in full. By doing this, you can build good credit, a good credit score, and make yourself eligible for student loans, loans from the bank, etc. However, credit cards do have their advantages and disadvantages.
Able to buy items now and pay later
Don’t have to carry cash
Creates a record of purchases
More convenient than writing checks
Consolidates bills into one payment
May require additional fees
Financial difficulties may arise if they lose track of how much they spend
Increased impulses later
Now, What Is a Credit Card? Anything I Need to Know?
Need Help? Here's An Example
Now that you have a basic understanding of credit, let’s do a little comparison shopping. Here are two credit cards that have similarities and differences. Follow the chart to gather your information.
Card #1- Chase Freedom Unlimited
Card #2- Chases Slate
Annual % Rate (APR)
The amount you transfer (including fees and interest) cannot exceed $15,000 or your credit limit, whichever is lower.
Cash Back rewards do not expire as long as your account is open.