What about Credits?

Learning the basics of credits


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.

Credit Card

Credit card is a plastic card issued by the bank, business, etc. for the purchase of goods or services on the credit. Today the use of credit is really modern, almost everybody has one to buy things in an easy way, take it now and pay later. The credit cards can be used in many places around the world like stores, gas stations, restaurants, etc. Just the costumer need to remember that every credit card has a interest too pay after ask for borrowing. The credit card has a limit, it is depending the company, annual fees are the chargers by having the credit card, this charge change annually or depending of the contract. If the consumer leave to pass the time and it had not give the certain of amount by certain period of time, he/she can be charged for penalty fees it also depends of the bank.

Tips to be safe with a credit card

Many people has credit cards to get things in credit. Other people think that a credit card is a toy to get things free, but at the end they have a big debt with interest, if you don't want to be one of those you can follow these easy tips to prevent extra fees.

-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.