What is Credit?
Credit is the confidence in a borrower's ability and intention to repay. People use credit in financial institutions, businesses, and individuals to receive loans. The loans are used to buy goods and services.
The credit score a person has determines how much they will be allowed to borrow, for what purpose, for how long, and at what interest rates.
What are the forms of credit?
Basics of Credit Cards
What are the benefits and costs of using credit cards? Extra cash, luxury vacations, loans and merchandise that you eventually have to pay back.
Credit Card tips
- Only buy things you can pay off in a month
- Low limit credit cards limit how much you can owe
- Prepaid credit cards require you to put the money upfront
- Be responsible
- Shop around for different APR on other cards
- Sign your credit card right away
- Use a secure browser
- Don’t share account information
- Pay more than the minimum balance
- Don’t max out your credit cards
- Keep track of what you charge
- Always pay on time to avoid late, annual, and over the limit fees.