By Oronzo Pavone
Basics of credit
- Credit is the ability to borrow money and pay it back later
- Forms of credit are credit cards and personal loans
- Credit is not free , you have to pay it back with interest
- what determines a person if they get credit is their credit report and how high there credit score is.also they can go to the credit bureau and get information
- to get credit you must prove creditworthiness which shows how responsible you are when it comes to paying back a loan or bill.
Credit is something you gain when you make payments on bills or loans on time. when you make these payments and gain this credit your credit score will increase which means you can have more on credit cards and pay less interest on loans.when you have a high credit score you show creditworthiness and that shows the credit bureau how responsible you are when it comes to paying bills and loans on time.
Credit Cards What You Should Know
Basics Of Credit Cards
- Card used to make purchases with the credit you have earned but must pay it with its monthly rate. Each card has a credit limit
- You can use a credit card almost anywhere
- When you have a credit card you can make purchases on things you want instead of paying it with cash.if you pay your credit card annually fee on time your credit goes up and you can spend more the next month.Credit cards have interest rates from 0%-29%
- If you pay the entire annual fee on time you will not have any interest .
- Over the Limit means you went over your credit limit.and you will have to pay a penalty fee
Smart Consumers Dont Fall Into Credit Traps
- When using a credit card make sure you can pay the interest and annual fee each month.
- Dont go over your credit card limit and if you do make sure you pay it back on time or your credit will drop.
- be sure that you can afford to pay over limit and penalty fees if they occur
- Don't sign up for multiple credit cards because it can hurt your credit score.