What about Credits?
Learning the basics of credits
Credit
Credit is the ability to obtain good or services before goods or services before payment, based on the trust that the payment will be in the future.
Exists some ways to get credit, some examples are the students loans, credit cards, down payments, personal loans etc. Generally a credit is take it because the person has not enough money to pay fast, so they prefer to owe a person or a company, generally a bank, to pay the complete money and they to pay back with little amounts.
Credit get some benefits, but majority every credit has a cost, that is called Interest (APR). It means if you ask for borrowing, you need to pay with some % by certain period of time until done with the debt. In a couple words you can get it now and pay after, but you have to pay more what you spend.
To defined how much money the bank can borrow, it has to check some important points like credit score (checking the numbers or the person's files) credit bureau (provide consumer credit information), credit report (the consumer history credit). They uses this to analyze the creditworthiness of the costumer.
Interest (APR)
Annual Percent Rate. Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. Frequently this amount does not change depending the conditions of the bank
Credit Report
Credit report is the history of all the loans that a costumers had or has, It's a way to meet the costumer, if she/he has a good credit record or bad record. It shows the monthly payments and the percents and time that its took in the older loans.
Lender
An organization or person that lends money. an example is a mortgage lender.
Credit Card
Tips to be safe with a credit card
-Don't spend more than you don't have.
-Be careful with the interest and the time that you have to pay the money.
-Don't pay late because you can be charged.
-Never give your pin number to anybody.
-Make a checkbook to record all your transactions.
-Don't get more than 3 credit cards, in my opinion one is enough.
-Save receipts to compare if something goes wrong.