Credit Newsletter

by Ernesto Alvarez p.7/8

The Basics of credit

Credit Cards are the ways to start with good credit. Credit makes buying what you want when you want easy but its not free. Also forms of credit involves low limit credit card, prepaid credit card, student credit card. These things are important because they follow you on the long run. Things that determine if you get credit and how much you get are Character, capacity, credit-worthiness, collateral. Costs that can be charged because of credit can be interest because of missing a payment.

Vocabulary Watch

  • Credit Score- numeric calculation of what is in your credit report, the higher the number the better(ranges from 300-800) and can affect anything you want to buy by missing payments.
  • Credit Report-check it once a year using equifax, experian or transunion.
  • Credit Bureau- is where the payments get recorded and which companies report the missing of a payment which effects you score.
  • Lender- An institution or individual who loans money to a borrower.
  • Personal loan- establishes consumer credit that is granted for personal use
  • Interest(APR)-the cost of using somebody else's money by borrow money.
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Credit Cards: What You Need to Know?

  • What is a credit card? Plastic card issued by a bank, business, etc., for the purchase of goods or services on credit.
  • Where can you use credit cards?
  • What are the benefits and costs of using credit cards? Benefits can be not having an annual fee and credit limit. Costs also my include Penalty fees and Over the limit fee.

Smart Consumers: Don’t Fall Into the Credit Card Trap

Important Tips are: Sign your card when you get it, don’t share info with anyone, secure browsers, pay more than the minimum balance, don’t max out, keep track of what you charge, pay on time.
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