Everything you need to know
What are the forms of credit?
Revolving Credit - Barrow a pre-established amount repeatedly as long as your account is in good standing.
Open Credit - This type of credit requires that all money borrowed must be repaid in full each month.
What is the cost of using credit?
What determines The creditworthiness of an individual
Interest - The percentage of a sum of money charged for its use.
Creditworthiness - Trustworthiness with money as based on a persons credit history.
Lender - An organization or person that lends money.
Where can you use a credit card? - any business that offers goods or services, swiped through a machine to charge the account.
What are the benefits of using a credit card? - includes cash back credit cards, frequent flyer miles, and reward credit usage. A down side is paying all the interest each month.
Credit limit - A credit limit is the maximum amount of credit that a financial institution or other lender will extend to a debtor.
Interest rate (APR) - the percentage of a sum of money charged for its use.